Key points of strategy:
• Profitability
• Strengthening market position
• Active customer care
L&T’s objective is to make the company share a sound and competitive investment in the long-term through healthy profitability and growth.
L&T aims to be the leading player in environmental management and in property and plant maintenance in selected Baltic and Russian markets. It will continue to operate in its present business sectors and pursue controlled expansion. Growth will be primarily organic, complemented by appropriate acquisitions. The objective is to outperform market growth, with a long-term net sales growth target of more than 10 per cent annually.
To maintain its competitive edge, L&T will take measures to improve efficiency and differentiate itself from the competition. Efficiency improvement measures include the adoption of a business process approach, a re-assessment of operating methods, and a reduction in the proportion of fixed costs. Process evaluation will be based on time and cost evaluations. Differentiation in the eyes of the customer will be achieved through pricing, development of existing services and sustained customer relationship management.
Profitability is the primary indicator of success. The most important profitability indicator is EVA (Economic Value Added), which the company aims to improve every year.