Larsen & Toubro (L&T) Chairman SN Subrahmanyan has underscored the importance of early succession planning in large, complex organizations, stating that “it’s never too early” to groom future leaders.
In a recent interview, Subrahmanyan shared insights into L&T’s structured approach to leadership continuity, reflecting on his own transition and the company’s long-term strategy to ensure smooth handovers.
As India’s largest construction and engineering firm, L&T operates across multiple verticals including infrastructure, technology, financial services, and defense.
Subrahmanyan emphasized that the scale and diversity of the business demand a thoughtful and sustained approach to succession, not just a last-minute nomination.
L&T Succession Framework Already in Place
Subrahmanyan confirmed that L&T has already established a succession framework.
He stated, “There is a succession in place today; there is a deputy managing director in place.”
“But the long-term succession planning is also in place. The board and NRC [Nomination and Remuneration Committee] are kept in confidence,” he said.
Subramanian Sarma, who was appointed Deputy Managing Director in March 2025, is part of this framework.
He has served on L&T’s board since 2015 and is widely regarded as a seasoned executive with deep operational experience.
Lessons from a Seamless Transition
Reflecting on his own succession journey under former chairman AM Naik, Subrahmanyan highlighted the value of a well-orchestrated transition.
“The idea is to have a smooth succession, like what happened between Mr. Naik and me. He appointed me in 2016–17 and moved away as a non-executive, hardly present in day-to-day matters. That’s the way it has to be,” he noted.
Subrahmanyan credited Naik’s mentorship and foresight for enabling a seamless leadership shift, adding that succession planning should span five to six years, not just one.
Performance Over Titles at L&T
Subrahmanyan was clear that succession at L&T is not merely about naming a leader.
“Succession planning in a complex organization is just not nominating somebody. He has to be acceptable to everyone,” he said.
He emphasized that employees earn respect within the organization through performance, not titles.
“A successor must manage at least three to four business verticals to understand the company better,” he added.
The expectation is that future leaders demonstrate tangible achievements and earn the trust of colleagues and clients alike.
Building a Leadership Pipeline
The chairman’s remarks reflect L&T’s broader commitment to building a robust leadership pipeline.
By identifying and nurturing talent early, the company aims to maintain continuity, minimize disruption, and uphold its reputation for operational excellence.
Global best practices in succession planning treat leadership development as an ongoing process rather than a reactive measure, and Subrahmanyan’s philosophy follows this approach.
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