L&T Precision Engineering & Systems to recalibrate itself through product and market diversification, says its Head A T Ramchandani
An unassuming personality and the spirit of resilience are the two unmistakable characteristics that define Arun Taro Ramchandani (ATR), Head of L&T Precision Engineering & Systems (PES).
Growing up in Mumbai, ATR’s childhood was marked by academic excellence and a thirst for exploration. His father, who worked in the merchant navy and later with Indian Oil, and his homemaker mom provided a supportive environment that nurtured his curiosity and drive.
After completing his First Year Junior College (Std XI) in Science from Mumbai’s iconic St Xavier’s College, he sat for the IIT entrance exam in 1979, which he was “not very confident of acing.” But his talent defeated his modest assessment about himself: ATR cleared the exam and secured a spot at IIT Delhi for mechanical engineering.
His IIT years – filled with a mix of academic rigour, fun and adventurous pursuits – proved transformative for him. One memorable experience was his attempt to climb the Kolahoi Glacier in Kashmir. Despite the tough conditions and a slip that sent him rolling back down, ATR’s determination shone through.
Another defining adventure was an epic cycle trip from Delhi to Goa. Along with his friends, he cycled through highways, stayed at dhabas, and even strayed into Sophia Girls’ College in Ajmer, Rajasthan for breakfast.
These experiences not only showcased his adventurous spirit but also his ability to navigate through diverse and challenging situations.
Graduating from IIT in 1984, ATR landed a job at L&T through campus interview, and this marked the beginning of a remarkable career. Over the years, he rose through the ranks, eventually becoming the Head of PES in June 2022.
ATR’s story is one of perseverance and unwavering focus on one’s responsibilities without being impatient about the outcome. His journey, filled with unique experiences and personal anecdotes, embodies the spirit of L&T’s commitment to nurturing talent and fostering growth.
Bappaditya Paul recently spoke to him, discussing his life’s journey and the future roadmap for L&T Precision Engineering & Systems. Excerpts:
Q: Being an IITian, you could have joined any company. Why did you choose L&T?
A: I was never really in the gold rush to bag the highest paying job or an Ivy League admission. In our final year, while most of my batchmates were attempting GRE, CAT, GMAT or Advanced GRE to go abroad for further studies, I told myself: “Look, I’ve studied mechanical engineering for five years, now I should go out and see how this is applied in the real world.”
I couldn’t make an impression in my first two campus interviews: in one (with Hindustan Lever) I didn’t get a chance to speak at the group discussion, and the other (with Telco) happened late in the night and it didn’t go well. Maybe, I was third time lucky, or maybe it was destined to be: the interview with L&T went very well.
But frankly, I did not know much about L&T. I had done summer internship at Mazgaon Docks, while a couple of my batchmates had interned at L&T. They gave positive feedback about their experience, mentioning that they worked in the shops and did interesting stuff. In contrast, my internship involved sitting under cranes to escape the sun and hanging around the yard! So, having heard my batchmates’ positive experience, I was happy to land a job at L&T. Plus, my parents were in Mumbai, which was an added advantage.
Q: And what happened next?
A: I joined L&T as a Graduate Engineer Trainee at Powai in what was then known as Group-II business vertical. It was equivalent of what is now Heavy Engineering. Group-II had two divisions – Equipment Manufacturing, and EPC Projects – but a common R&D wing. It was during the month-long orientation programme itself that I made up my mind to be in R&D.
Q: What was the focus of L&T’s R&D in those years?
A: I started working under Amitabh Nath, who later relocated to Vadodara and was part of L&T’s Hydrocarbon business. In those days, R&D was more about technology absorption. We had many foreign partners and collaborators, and our goal was to understand their designs, not just reverse engineer the products but also grasp the intricacies behind them.
For example, Nath was building an atomiser for making milk powder as a substitute to what was being supplied by a Danish firm called Niro. The atomiser spins at about 25,000 RPM, separating milk into water and powder. I developed a device to prevent oil leakage into the milk, which was a critical task.
Q: How did you transition to the defence vertical?
A: This happened gradually. It was around 1987 that the late ISRO scientist and former President of India, A P J Abdul Kalam was looking for a private industry partner for the Integrated Guided Missile Development Programme (IGMDP) which he led, and L&T won contracts for the Nag missile carrier, Pinaka launcher system and Trishul surface-to-air missile launcher.
J D Patil (JDP), now L&T’s Executive Committee Member, was heading the Nag project, and he told our R&D Head “Look I need couple of guys, and I want ATR in my team.” That’s how I got into the defence vertical.
Q: Did these projects impact your career?
A: Working on these defence projects, in close collaboration with DRDO, was particularly challenging yet interesting. It took us seven years to build and test those systems. That was an exciting time for me as I realised there was so much to learn and do. We read a lot, went to libraries, and interacted with scientists. It was a huge learning experience, and I felt I had found my career calling. So, after that I never looked at anything beyond L&T.
Q: Any specific project that you particularly remember?
A: It was after 1998. L&T was awarded a contract to build a stabilised platform for vertical launching of missiles from ship. The platform was to ensure that the missile could be fired vertically despite the ship’s movements.
By then, I had gained considerable experience and was leading the project. We worked closely with V K Saraswat, who later became the chairman of DRDO.
We conducted a night trial off the coast at Balasore in Odisha with a live missile. On the night before the trial, while transferring the missile from the stabiliser back to the trolley, it slipped from the grab arms and was precariously perched. Sensing panic on the ship deck, Dr Saraswat immediately declared that the ship’s captain and I had to take all decisions to retrieve the live missile to a safe condition. The safety of the ship and its crew depended on the decisions I would take. We carefully retrieved the missile in about half an hour.
We fired the missile early next morning, but it cartwheeled and fell within 50 meters from our ship. After 18 months of effort, seeing it fail was disheartening, but we discovered that a single wrong sign in the control system caused the error, rectified it, and eventually commissioned the system. That was a learning as to why precision and perfection matter.
Q: While all this was going on, what about your personal life?
A: Not much because a lot of my time was spent on work. However, in 1992, I got married. Interestingly, L&T and JDP had a role to play in that too.
Q: How was that!
A: So, it was 1989. Neelanjana Mitra, an effervescent young lady working with the Central PSU Balmer Lawrie in Kolkata, came to L&T Powai to conduct a market survey and she had a long meeting with JDP. The meeting ended late in the afternoon and JDP got worried as to how she would get back to her guest house at Malabar Hill (as back in those times, taxis and buses from Powai to South Mumbai were scarce).
I used to go to my home by an L&T bus that took mails to L&T House after office every day. JDP suggested Neelanjana take that bus and asked me to keep her company. And that’s how I met my to-be wife.
Q: Interesting! So, it all started in the mail bus?
A: Yes! We dated for three years and got married in 1992. After marriage, she relocated to Mumbai by taking a transfer to Indo-Burma Petroleum, which was later merged with Indian Oil.
Q: India opened the defence sector to private industries in 2001. That must have been a big development for L&T?
A: You’re right! After 2001, we got licences to do virtually everything in defence, from building weapon delivery platforms, radars, to submarines, ships, and land platforms. Until then, we were operating from heavy engineering shops at Powai and Hazira.
Now, we started focussing on growing our business, and in 2007 set up a new facility at Talegaon near Pune for critical systems integration. That was L&T’s first significant investment in the defence business.
This was followed by another factory at Coimbatore and the Kattupalli Shipyard. Our centres, operations, and investments grew significantly over time. Then, in 2019, came the Hazira Armoured Systems Complex.
Q: Who played the biggest role in these expansions?
A: There were many people, but a lot of credit goes to JDP for his optimism and courage to take on more. Despite intermittent dry spells where we were unsure of the next big order, JDP’s leadership helped us secure breakthroughs.
JDP focussed on liaising with the Ministry of Defence (MoD) and driving reforms in their procurement processes to create a level playing field and enhance the ease of doing business. In fact, he played a crucial role in redefining MoD’s procurement processes and Acquisition Manuals as they exist today.
Q: When did you realise your role as a key leader in this business?
A: There were 3-4 of us who grew with this business. So, when I was made the Head of the vertical in 2022, it came as a natural progression and an opportunity to drive growth.
Q: What, according to you, has made this business stay afloat?
A: We operate like a start-up, growing and incubating new offerings. The Company has been supporting us with investments and allowed us to build teams. We have maintained a good RoI throughout by deploying capital judiciously. We manage our finances well, operate frugally when needed, and ensure that we secure the right orders and deliver on them.
We have always been profitable, even at a small scale, and reinvested our earnings into R&D and new products.
Today, our order book has grown to over Rs 35,000 crores, and we are slated to achieve revenues above Rs 5,000 crores. We are the number one private defence player in India by revenue and product bandwidth, and an important contributor to L&T’s fame as a nation builder.
Q: Last year, your vertical was renamed from L&T Defence to L&T Precision Engineering & Systems. Why was that?
A: There are two main reasons. First, we felt that the defence market is too much of a single-customer domain. Hence, to have a sustainable, scalable business, we need products that can address larger and global markets. We want to leverage our capabilities in precision products and electronics to expand our offerings.
Second, there is a perception issue with being labelled as a pure-play defence entity. We are more comfortable branding ourselves as a nation builder by offering a bouquet of precision products and systems.
The idea is to look at scalable products with IP control and niche engineering capabilities. We aim to cross a billion- dollar revenue by the end of LAKSHYA 2026 and scale the business by two-three times in the next plan period, balancing our defence offerings with scalable dual- use or purely civilian products.
Q: That sounds impressive! Now, when it comes to work-life balance, where do you stand?
A: More work, less life but if you broaden the definition of life to cover what you enjoy doing, I’m doing well. We are constantly adapting our culture to address expectations of a new generation knowledge workforce. People who feel the need to spend more time at work do so by choice.
Q: What do you do for leisure?
A: I read a bit and travel to new places whenever I can.
Q: Any advice for people on their mid- career journey at L&T?
A: With many opportunities, India is an exciting place for today’s youth. Young people should grab these opportunities, be entrepreneurial in their outlook, adapt to technological shifts, and build a good future for themselves, the Company, and the nation.
L&T offers opportunities to professionally excel and contribute through mega projects at both national and international level. At L&T, if you work diligently, you will surely get spotted and see career growth.
