A. M. Naik Explained

A. M. Naik
Birth Name:Anil Manibhai Naik
Birth Place:Navsari, Province of Bombay, British India, (now Gujarat, India)
Birth Date:9 June 1942
Education:B. E. (Mechanical Engineering)
Occupation:Chairman Emeritus of Larsen & Toubro
Spouse:Geeta Naik
Children:2

Anil Manibhai Naik (born 9 June 1942) is an Indian industrialist, philanthropist and the Chairman Emeritus of Larsen & Toubro, an Indian engineering conglomerate, and a former Chairman of the National Skill Development Corporation.[1] [2] [3] [4] [5]

He was awarded the Padma Bhushan, India's 3rd highest civilian award, in 2009.[6] In 2019, he was awarded the Padma Vibhushan, India's 2nd highest civilian award.[7] Naik is also the recipient of the 'Economic Times - Business Leader of the Year Award, for the year 2008. [8]

Early life

Naik is a Gujarati.[9] He was born to a family of teachers in Gujarat, also referred to as Master Kutumb in Gujarati language.[10] [11] His father, who used to teach at Hansraj Morarji Public School in Mumbai, heeded Mahatma Gandhi's call to revitalise India's villages, and decided to return to his native village along with his family.[12] Young Anil had finished five years at his father's school by this time, and the rest of his schooling was obtained from schools in Endhal and the neighbouring village of Kharel.[13] In June 1958, Naik enrolled at V.P. Science College in Vallabh Vidyanagar, where he would prepare for a year for admission to an engineering college.[14]

He graduated with a bachelor's degree in mechanical engineering from Birla Vishvakarma Mahavidyalaya Engineering college in Vallabh Vidyanagar in Gujarat.[15]

After graduation, he went to Mumbai with a note from his father introducing him to Viren J. Shah (another HMPS alumnus) working in Mukand Iron & Steel Works Limited to apply for its engineering programme. Due to his lack of proficiency in English, the personnel manager had asked him to improve his English. So Naik started working on his English skills. In the meantime, he joined Nestor Boilers, which was a Parsi-owned firm.[16] Changes in ownership and management style at Nestor Boilers prompted Naik to turn to L&T.

Career at L&T

On 15 March 1965, Naik joined L&T, as a junior engineer.[17] A rapid rise followed. He was appointed Assistant Manager within three years and 15 days of joining – a record at L&T.<ref>Book: Merchant, Minhaz. The nationalist : how A.M. Naik overcame great odds to transform Larsen & Toubro into a global powerhouse. Harper Business. 2017. 9789352772889. Noida, Uttar Pradesh, India. 51. 1021061261. He was promoted as General Manager in 1986. He became Member of board of L&T Limited on 23 November 1989. In 1999, he took over as the chief executive officer and managing director. In 2003, he became the Chairman of Larsen & Toubro, the first employee in the company's history to be elevated to this post. At the helm, Naik initiated the transformation process that made L&T into a more entrepreneurial organisation with increased emphasis on wealth creation for all stakeholders. In an interview to McKinsey, Naik explained his reasons for the portfolio rationalisation that he undertook.[18] In 2017, he stepped aside from executive responsibilities, and took over as Group Chairman.[19] In May 2023, Naik was appointed the Chairman Emeritus of the company.[20]

Ring fencing L&T

In the late 1980s, L&T encountered a takeover attempt by a large business group (Reliance group) which seized a substantial stake in the company.[21]  The management of L&T staunchly resisted these attempts to take over the company, wanting to maintain it as India's premier, indeed only, professionally run conglomerate. The central government, through various agencies, public sector banks, insurance companies, etc., held a large portion of L&T's shareholding. A succession of governments (as many as seven) held office during this period, but L&T's prestige and standing was such that none of them did anything to contravene the wishes of the board of professionals.

Finally, the predatory investor gave up and sought a settlement. In 2002, the predatory group's entire holding was transferred to a different family-owned business house (Birla group). The following year, this shareholding was purchased by an "employee welfare trust" funded and controlled by L&T itself. In this way, the company not only fended off the predator but also fortified its position as a professionally run company by gaining control of a large shareholding.[22] The way in which Naik thwarted the take-over and fortified L&T against such threats has been widely covered in the media.[23]

The matter thus ended in a 'win-win', with all parties concerned being happy with the outcome. S. Gurumurthy, currently on the Board of the Reserve Bank of India described the events as a 'security threat for L&T being converted into a security ring.' The Employee Stock Options which emanated from the successful resolution of the issue gave financial security to a large section of employees, and allowed them to share in the company's growth.[24] [25]

Shaping L&T into a 'Nation Builder'

Naik's stewardship of L&T is characterised by a sharper focus on sectors of national significance - defence, nuclear, aerospace, infrastructure, oil & gas and power. He has been instrumental in imparting a strong, nationalistic orientation to the company's products, offerings and capabilities, giving rise to its description as 'the company that is building 21st Century India'.[26]

He has retired from Larsen & Toubro Limited on 30 September 2023.[27]

Chairman – NSDC

In 2018, the Government of India appointed Naik the Chairman of the National Skill Development Corporation – the apex body to promote skilling and part of the Skill India mission of the Prime Minister.[28] Making the announcement, Skill Development and Entrepreneurship Minister Dharmendra Pradhan said under Naik's leadership, the corporation apart from its engagement in executing skilling modules, should also be a think-tank providing direction and necessary guidance for creating a demand-based skilling ecosystem in the country.[29] Naik said NSDC has developed a unique model combining skill development with strong industry partnerships. NSDC, under the ministry, aims to promote skill development by catalysing creation of large, quality and for-profit vocational institutions. The organisation provides funding to build scalable and profitable vocational training initiatives. 

Philanthropy

In August 2016, Naik announced that he would give 75% of his income to charitable causes over his lifetime, setting up the Naik Charitable Trust for education and the Nirali Memorial Medical Trust for healthcare.[30]

Nirali Memorial Medical Trust had entered into an agreement to set up a Cancer Hospital at Navsari which will be operated by Tata Trusts.[31] [32] In January 2019, the Prime Minister of India laid the foundation stone for the Cancer hospital in Navsari, Gujarat.[33] [34] The healthcare campus at Navsari will also house a speciality hospital for which the NMMT has tied up with the Apollo Hospitals Group.[35] NMMT also runs Nirali Memorial Radiation Centre in nearby Surat, a multi-disciplinary hospital at Powai in Mumbai and provides modern medical facilities at a hospital at Kharel, Gujarat.

Awards and honours

!Year!Name!Awarding Organisation!Ref
2023Lifetime Achievement AwardEconomic Times Awards[36]
2023Lifetime Achievement AwardForbes India[37]
2023Lifetime Achievement AwardMint[38]
2022Hall of FameCNBC-TV18[39]
2021EY Entrepreneur Of The Year India 2021 Lifetime Achievement AwardErnst & Young[40] [41]
2021Lifetime Achievement AwardBusiness Standard[42]
2019Padma VibhushanGovernment of India[43]
2018Lifetime Achievement AwardBombay Management Association[44]
2018Lifetime Achievement AwardBusiness Today[45]
2017India's  50 Greatest CEOs EverOutlook Magazine[46]
2015Giants International AwardGiants International[47]
2015Businessman of the Year 2014 AwardBusiness India[48]
2015Lakshya Business Business Visionary Awards 2015National Institute of Industrial Engineering (NITIE), Mumbai[49]
2014India Today Power List – 50 Most Powerful PeopleIndia Today[50]
2012The Best-Performing CEOs in the World Harvard Business Review[51]
2012D.M. Trivedi Lifetime Achievement AwardIndian Chemical Council[52]
2012Infrastructure Leader of the YearInfrastructure Excellence Awards[53]
2012Most Powerful CEOsEconomic Times[54]
2010Asia Business Leader Award - 2010CNBC Asia[55] [56]
2010Golden Peacock Life Time Achievement Award for Business LeadershipGolden Peacock Awards[57]
2010Harish Mahindra Memorial Global Award for Outstanding Contribution to Corporate LeadershipPriyadarshni Academy[58]
2010Business leader of the Year - Building IndiaNDTV Profit[59] [60]
2010Best CEO of the Year AwardIndian Society for Training & Development[61]
2010Qimpro Platinum Standard – National Statesman Award for Excellence in BusinessQimpro Foundation[62] [63]
2009Mumbai's 50 Most InfluentialDNA[64]
2009India's 50 Most Powerful PeopleBusiness Week[65]
2009Padma BhushanGovernment of India[66] [67]
2009Business Leader of the Year The Economic Times[68]
2009Gujarat Garima (Pride of Gujarat) AwardGovernment of Gujarat[69] [70] [71]
2008Entrepreneur Of The YearErnst & Young[72]
2008Best Transformational LeaderAsian Centre for Corporate Governance & Sustainability Awards[73]
2008V. Krishnamurthy Award for ExcellenceCentre for Organization Development, Hyderabad[74]
2005Sankara RatnaSankara Nethralaya[75] [76]
2004Lifetime Achievement Excellence Award for 'Best Corporate Man of the Decade'Foundation of Indian Industry & Economists[77]
2003JRD TATA Corporate Leadership AwardAll India Management Association[78]

Personal life

A.M. Naik is married to Geeta Naik. They have two children, The Daughter is based in the USA: And a son, Jignesh, who works for Google moved back to India, and a daughter, Pratiksha, who runs a private medical practice.[87]

Bibliography

The Nationalist – How A.M. Naik Transformed L&T into a Global Powerhouse, by Minhaz Merchant and published by Harper Collins.[88] [89]

Strategic Brand Management for B2B Markets: A Road Map for Organizational Transformation, by Sharad Sarin and published by SAGE Publications India Pvt Ltd.[90]

The Art of Business Leadership : Indian experiences, by S Balasubramanian and published by Response Books.[91]

External links

Notes and References

  1. Web site: Board of directors of L&T: A M Naik. 5 April 2019. Larsen & Toubro. https://web.archive.org/web/20190123010159/http://www.larsentoubro.com/lntcorporate/common/ui_templates/HtmlContainer.aspx?res=P_CORP_AABT_BSTR_ABRD_AAMN. 23 January 2019. dead.
  2. Web site: Larsen & Toubro Annual Report 2017-18. 5 April 2019 . Larsen & Toubro.
  3. Web site: L&T Executive Chairman AM Naik to take home Rs 32.21 crore leave encashment. 23 August 2017 . Business Today. 23 August 2017.
  4. Web site: Ministry of Skill Development & Entrepreneurship appoints Mr. AM Naik as Chairman of NSDC . . 23 August 2019.
  5. News: Nanda . Prashant K. . L&T's A.M. Naik appointed NSDC chairman . Mint. 28 November 2018 . en.
  6. Web site: Padma Awards . Ministry of Home Affairs, Government of India . 2015 . 21 July 2015 . dead . https://wayback.archive-it.org/all/20171019215108/http://mha.nic.in/sites/upload_files/mha/files/LST-PDAWD-2013.pdf . 19 October 2017 .
  7. Web site: Padma Vibhushan for Babasaheb Purandare, A M Naik . . TNN . 26 January 2019 . 26 January 2019.
  8. News: AM Naik, Larsen & Toubro, Business Leader of the Year. 17 January 2009. 20 December 2019. The Economic Times.
  9. News: Padma Bhushan for 4 Gujaratis. Ankur. Jain. 26 January 2009. The Times of India. Ahmedabad.
  10. News: The man who took on Ambani, Birla to 'save' L&T. The Hindu. Piyush Pandey. 18 November 2017 . 18 November 2017.
  11. Web site: Living life the L&T way . Intecc.com . 23 August 2019 . 30 September 2017 . https://web.archive.org/web/20170930173317/http://lntecc.com/homepage/documents/concord_magazine_jan-mar_15.pdf . dead .
  12. Web site: Larsen and Toubro's retired chairman Anil Naik receives Rs 21 crore as cash encashment for unused sick leaves. businesstoday.in. 29 January 2019 . 26 August 2019.
  13. News: Minhaz Merchant's book on AM Naik is more than a biography, it is also a meeting of minds. Layak. Suman. 18 November 2017. The Economic Times. 26 August 2019.
  14. Book: Merchant, Minhaz. The nationalist : how A.M. Naik overcame great odds to transform Larsen & Toubro into a global powerhouse. Harper Business. 2017. 9789352772889. 23. 1021061261.
  15. Web site: Reinvigorating a corporate giant: An interview with the chairman of India's largest infrastructure company. McKinsey & Company. 21 December 2011.
  16. Web site: Lunch and Breakfast with BS:AM Naik. Business Standard. 21 December 2011.
  17. Web site: AM Naik — A rare interview to Moneylife. Moneylife. 21 December 2011.
  18. Web site: Reinvigorating a corporate giant: An interview with the chairman of India's largest infrastructure company McKinsey. mckinsey.com. en. 3 September 2019.
  19. Web site: Raghunathan. Anu. India's Mr. Infrastructure, A.M. Naik Of Larsen & Toubro, Completes 50 Years At The Conglomerate. 31 December 2020. Forbes. en.
  20. News: L&T appoints SN Subrahmanyan as MD, Chairman; AM Naik to be Chairman Emeritus . 5 October 2023 . Mint . 10 May 2023.
  21. News: With the acquisition of L&T, Ambanis get ready to go full speed ahead. Palakunnathu G.. Mathai. 15 November 1988. India Today. en. 12 September 2019.
  22. News: Grasim open offer for L&T — Right in letter, wrong in spirit . 6 March 2021 . @businessline . 20 October 2002 . en.
  23. News: L&T's AM Naik recalls thwarting takeover bids from Ambanis, Birla. 19 November 2017. The Economic Times. 27 August 2019.
  24. News: 40 Years Ago... And now: L&T - The graveyard of corporate raiders. Chatterjee. Dev. 17 September 2014. Business Standard India. 27 August 2019.
  25. Web site: The man who won't slow down. fortuneindia.com. 5 March 2011 . en. 27 August 2019.
  26. Web site: L&T Chairman Naik felicitated for his role in nation building. Excelsior. Daily. 18 May 2019. Jammu Kashmir Latest News Tourism Breaking News J&K. en-US. 27 August 2019.
  27. News: Special dividend in honour of Chairman Naik: L&T . 9 August 2023 . The Economic Times . 31 July 2023.
  28. Web site: A.M. Naik appointed as Chairman of National Skill Development Corporation. pib.gov.in. 27 August 2019.
  29. Web site: NSDC INDIA Press Release. National Skill Development Corporation.
  30. News: L&T chief AM Naik pledges 75 per cent of his income to philanthropy. Prasad. Rachita. 26 August 2016. The Economic Times. 3 September 2019. Sriram. R..
  31. Web site: A.M. Naik-founded Nirali Memorial Medical Trust to set up Cancer Hospital at Navsari, Tata Trusts to manage operations. Tata Trusts. 3 September 2019.
  32. Web site: L&T's AM Naik joins hands with Tatas to set up cancer hospital. businesstoday.in. 11 July 2018 . 3 September 2019.
  33. Web site: PM Lays Foundation Stone Of A Cancer Hospital At Navsari, Gujarat. domex. 19 January 2019. indiaprojectsnews.in. en. 3 September 2019.
  34. Web site: I shall be visiting Hazira tomorrow. I would be dedicating L&T's Armoured Systems Complex to the nation and also be laying the foundation stone for the Nirali Cancer hospital at Navsari.. Modi. Narendra. 18 January 2019. @narendramodi. en. 3 September 2019.
  35. News: A M Naik-established trust to set up hospital in Navsari. Press Trust of India. 1 June 2019. Business Standard India. 3 September 2019.
  36. News: The Economic Times Awards for Corporate Excellence 2023: A look at the Indian winners league . The Economic Times . 19 December 2023 . 19 December 2023 . 0013-0389.
  37. News: L&T's Anil Manibhai Naik gets Lifetime Achievement Award. Check full list of winners at Forbes India Leadership Awards 2023 . Moneycontrol . 24 March 2023 . 28 March 2023.
  38. Web site: Staff Writer . 22 March 2023 . Businessmen, dealmakers share top honours at Mint Investment Awards . 28 March 2023 . mint . en.
  39. News: 1 April 2022 . CNBC-TV18 IBLA highlights: Adar Poonawalla Outstanding Business Leader, HUL Outstanding Company; check for full list of winners . 6 April 2022 . CNBC . en.
  40. Web site: EY Entrepreneur Of The Year 2021 Finalists . EY Entrepreneur Of The Year . 11 April 2022.
  41. News: EY announces the 21 finalists for '23rd EY Entrepreneur of the Year' awards . 11 April 2022 . Business Standard . 28 March 2022.
  42. News: Debroy. Bibek. 14 December 2021. BS Awards 2021 highlights: Indian economy should recover well, say winners. 25 February 2022. Business Standard.
  43. News: L&T's A M Naik gets Padma Vibhushan. 16 March 2019. The Hindu. 3 September 2019. en-IN. 0971-751X.
  44. Web site: BMA felicitates A. M. Naik & Subhash Chandra among others at Corporate Leadership Awards. BMA-India.com. 22 February 2018. Bombay Management Association. en-US. 3 September 2019.
  45. Web site: Mr. Infrastructure- Business News. businesstoday.in. 10 January 2018 . 3 September 2019.
  46. Outlook India: More than just the news magazine from India. Outlook. 16 September 2019.
  47. Web site: 43rd Giants Day Celebration and Awards Function 2015 Giants Welfare Foundation. en-US. 3 September 2019.
  48. Web site: AM Naik wins "Businessman of the Year Award". Excelsior. Daily. 8 January 2015. Jammu Kashmir Latest News Tourism Breaking News J&K. en-US. 3 September 2019.
  49. Web site: Avartan NITIE. https://ghostarchive.org/iarchive/facebook/676253662391874/1198861543464414 . 26 February 2022 . limited. Facebook. en. 3 September 2019.
  50. Web site: India Today High and Mighty 2014: 50 powerful people. India Today. 14 November 2014 . en. 3 September 2019.
  51. News: The Best-Performing CEOs in the World. Hansen. Morten T.. 1 January 2013. Harvard Business Review. 3 September 2019. Ibarra. Herminia. January–February 2013. 0017-8012. Peyer. Urs.
  52. Web site: Chemical Engineering World. cewindia.com. 3 September 2019. 3 September 2019. https://web.archive.org/web/20190903054629/https://cewindia.com/spurring_oct12_industry.html. dead.
  53. Web site: Essar Steel Events Essar Steel Infrastructure Excellence Awards 2012 announced. EssarSteel. 16 September 2019.
  54. Web site: Powerful CEOs 2012 - Global Indian Business Leaders of 2012 - The Economic Times. economictimes.indiatimes.com. 3 September 2019.
  55. Web site: Asia Business Leaders Awards. abla.cnbc.com. en. 26 August 2019. 18 September 2018. https://web.archive.org/web/20180918111536/http://abla.cnbc.com/. dead.
  56. Web site: Region's Top Leaders Named at the 9th CNBC Asia Business Leaders Awards. cnbc.com. . 25 November 2010. 26 August 2016.
  57. Web site: A.M. Naik receiving Golden Peacock Life Time Achievement Award for Business Leadership 2010. goldenpeacockawards.com. 26 August 2019.
  58. Web site: Priyadarshni. priyadarshniacademy.com. 26 August 2019.
  59. Web site: A very prestigious award: AM Naik. ndtv.com. 26 August 2019.
  60. Web site: NDTV Profit Gives Away Business Leadership Awards. bestmediaifo.com. 3 September 2010 . 26 August 2019.
  61. Web site: 46th Annual Report and Accounts . Indian Society for Training & Development . 11 September 2019 .
  62. Web site: Qimpro - Qimpro Awards - Business. qimpro.com. 26 August 2019.
  63. Web site: Qimpro Platinum Standard 2009. qimpro.com. 26 August 2019.
  64. Web site: Mumbai's Top 50 Influentials Latest News & Updates at DNAIndia.com. 30 July 2009. DNA India. en. 26 August 2019.
  65. News: PM, Advani, Tata, Ambanis among India's most powerful. 19 April 2009. The Economic Times. 26 August 2019.
  66. Web site: Padma Awards announced. pib.gov.in. 7 September 2019.
  67. Web site: Padma Awards Interactive Dashboard. www.dashboard-padmaawards.gov.in. en. 7 September 2019.
  68. News: AM Naik, Larsen & Toubro, Business Leader of the Year. 17 January 2009. The Economic Times. 26 August 2019.
  69. Web site: MACHINIST - A M Naik, L&T CMD, conferred Gujarat Garima Award. Machinist. machinist.in. 26 August 2019.
  70. Web site: Gujarat Garima Award 2009 to Larsen & Toubro(L&T)'s AM Naik. 10 January 2009. DeshGujarat. en-US. 26 August 2019.
  71. Web site: A M Naik, L&T CMD, conferred Gujarat Garima Award. moneycontrol.com. 26 August 2016.
  72. Web site: EY - Entrepreneur of the Year - Past winners. EY - Entrepreneur of the Year. 26 August 2019. https://web.archive.org/web/20190809140250/https://www.ey.com/in/en/about-us/entrepreneurship/entrepreneur-of-the-year/entrepreneur_of_the_year_award-hall_of_fame-old. 9 August 2019. dead.
  73. Web site: Asian Centre for Corporate Governance & Sustainability Awards – 2008 – Asian Centre for Corporate Governance. en-US. 26 August 2019.
  74. Web site: V. Krishnamurthy Award for Excellence. COD. en-US. 26 August 2019. 21 October 2019. https://web.archive.org/web/20191021123244/http://codhyd.org/honors/v-krishnamurthy-award-for-excellence/. dead.
  75. Web site: The History of Sankara Ratna and Shrimathi M.S. Subbulakshmi Awards. sankaranethralaya.org. 26 August 2019.
  76. Web site: Eye Lights. April 2005.
  77. Book: Balasubramanian, S.. The art of business leadership : Indian experiences. Sage Response. 2007. 9788178299747. Los Angeles [Calif.]. 104. 403775659.
  78. Web site: Awards AIMA Jrd Tata Corporate Leadership Award AIMA. aima.in. 26 August 2019. 25 December 2018. https://web.archive.org/web/20181225202341/https://www.aima.in/conferences-events/awards/aima-jrd-tata-corporate-leadership-award.html. dead.
  79. Web site: The Project. indiatoday.dk. da. 10 March 2017.
  80. News: L&T's A M Naik resigns as IIMA chairman Board of Governors. Press Trust of India. 1 January 2016. Business Standard India. 11 September 2019.
  81. News: AM Naik nominated as chairman of IIM-A board. Reporter. B. S.. 29 February 2012. Business Standard India. 3 September 2019.
  82. December 2011. Sheel Shrutam. Sardar Patel University Monthly News Letter.
  83. News: Convocation ceremony: Convocation ceremony at Gujarat Technological University held. 20 January 2013. The Times of India. en. 11 September 2019.
  84. News: L&T's Anil Naik awarded DLitt by VNSGU - Times of India. The Times of India. 26 February 2016 . 11 September 2019.
  85. News: MS University to confer honorary degree on Naik, Sanghvi. Press Trust of India. 1 April 2016. Business Standard India. 11 September 2019.
  86. Web site: EdelGive Hurun India Philanthropy List21. 29 October 2021. hurun-india. en.
  87. News: AM Naik - who owns 6 shirts & 3 suits - plans to give away all money he made as L&T boss. Gupte. Masoom. 19 September 2018. The Economic Times. 11 September 2019.
  88. Web site: The Nationalist. HarperCollinsPublishers India. 11 September 2019.
  89. News: Majumdar. Shyamal. 20 January 2018. 'The Nationalist', the story of A M Naik, who rebuilt Larsen & Toubro. Business Standard India. 31 December 2020.
  90. Book: Sarin, Sharad. Strategic Brand Management for B2B Markets: A Road Map for Organizational Transformation. 2010. New Delhi. 10.4135/9781446270271 . 9788132105220 .
  91. Book: Balasubramanian, S. The art of business leadership: Indian experiences. 2007. Response Books. 9788178299747. Los Angeles [Calif.|language=en|oclc=403775659].

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