Bad news for L&T CEO SN Subrahmanyan who advocated 90-hour workweek; company loses Rs 70000 crore due to…

Larsen and Toubro CEO and MD, SN Subrahmanyan, recently triggered a controversy with his remarks on the work-life balance debate, saying that employees must work 90-hours a week, even on Sundays.

In a major blow to engineering giant Larsen and Toubro (L&T), the Defence Ministry has found the company’s bid non-compliant in the Rs 70,000 crore tender to acquire six submarines. L&T, India’s largest engineering firm and 12th most-valued company, was recently in the news after its CEO and Managing Director (MD SN Subrahmanyan sparked a controversy with his remarks, saying that he “regrets” not being able to make his employees 90-hours in a week, including on Sundays.

L&T Rs 70,000 crore proposal rejected

L&T had filed a proposal in partnership with Spanish Navantia to provide the Indian Navy with six advanced submarines, with the ability to stay underwater for three weeks under Project 75 India, ANI reported, citing defence sources. However, the firm’s proposal was rejected by the Defence Ministry for being non-compliant with Indian Navy requirements, the report said.

As per the report,  L&T and its partner had showcased the functioning of its critical Air Independent Propulsion system in Spain to the Indian Navy team there on shore but the Indian Navy demanded a sea-proven system in its requirements in the tender document.

Mazagaon Dockyards only vendor in race

The rejection of L&T’s tender means that state-owned Mazagaon Dockyards Limited along with its partner ThyssenKrupp Marine Systems of Germany would be the only vendor left in the race for making the six submarines.

Recently, the Mazagaon Dockyards recently supplied the last of the six Project 75 Scorpene class submarine INS Vagsheer to the Indian Navy but is going to get orders for three more submarines under Project 75 (Additional Submarine) to be built with French Naval Group support.

Vendors involved in the programme have been making representations to the government and the Defence Ministry has been moving ahead as per procedures in the project and have vetted the process at all levels. There have also been suggestions made to the officials concerned to equally divide the project between the shipyards.

Lately, the Central government has cleared several submarine projects including both nuclear and conventional ones, to counter the rapid naval modernisation projects undertaken by New Delhi’s rivals, China and Pakistan.

90-hour workweek

Larsen and Toubro has been deeply involved in the strategic submarine projects for the Indian Navy and has facilities on both the seaboards to mainly support defence forces’ projects.

The company’s CEO and MD, SN Subrahmanyan, recently triggered a controversy with his remarks on the work-life balance debate, saying that employees must work 90-hours a week, even on Sundays, to compete with other nations. Subrahmanyan said he regretted that he wasn’t able to make L&T employees work on Sundays because he does so himself.

“If I can make you work on Sundays, I will be more happy, because I work on Sundays also,” he had said, and asked what employees at home on their off days and how long can husbands and wives “stare” at each other. “What do you do sitting at home? How long can you stare at your wife? How long can the wives stare at their husbands? Get to the office and start working.”

His comments came amid a raging debate over work-life balance triggered last year when Infosys founder Narayana Murthy argued that employees should work at least 70-hours in a week.

(With ANI inputs)