Mumbai, December 30, 2003: In a landmark decision today, the Board of Larsen & Toubro Limited appointed Mr. A.M. Naik as the Chairman & Managing Director of the Company. The move to elevate Mr. Naik is salutary recognition of his vision, dynamism and outstanding leadership. He has successfully led the Company through some of its most challenging times to emerge stronger. Mr. Naik's broad global perspective has seen the Company expanding its horizons beyond domestic frontiers and positioning itself to become a true international player.

Mr. Naik is L&T's first whole-time executive chairman for over a decade and a half. He is also the first to have risen from the executive ranks of the Company to be appointed Chairman. L&T has not had an executive Chairman since Mr. N.M. Desai retired in March 1989. Mr. Naik's appointment reflects the confidence of the Board of Directors in his proven ability to lead the Company and enable it realize the vision of becoming the country's leading engineering and technology enterprise.

Since Mr. Naik took over as MD & CEO in April 1999, he has restructured the Company into sharply focused operating divisions and led a transformation process aimed at enhancing shareholder value. His emphasis on HR and IT as the twin engines of growth have commenced yielding significant results.

Mr. Naik spearheaded the move to de-merge L&T's cement business to unlock value for shareholders. He played an active part in conceptualising the proposal of an Employees' Foundation/Trust to strengthen the employees' sense of belonging and enable L&T retain its identity and unique character.

L&T is widely regarded as a model professionally managed corporate. Mr. Naik's elevation to the post of Chairman is a matter of pride for all professionals in industry and particularly for all L&T-ites.