LANCO's history as an organisation is a reflection of the spirit of entrepreneurship, a far-sighted vision, dynamic leadership, ability to overcome adversity and take calculated risks, teamwork by committed professionals, and agility to take advantage of emergent opportunities.
The Seeds of Enterprise
In 1960, brothers Amarappa Naidu, Venkata Rama Naidu and Venkata Ratnam Naidu laid the foundation of LANCO by starting a transport business with one truck (a converted bus) inherited from their father L.V. Subba Naidu. Amarappa Naidu's business acumen and the brothers' commitment soon led to orders pouring in from construction companies that needed material to be transported to and from construction sites. By 1976, the thriving business boasted of a fleet of 100 trucks that serviced the construction industry in Andhra Pradesh.
Building the Foundation
Having succeeded beyond imagination, the Naidu brothers planned to enter the construction business themselves. In 1980, Uma Maheshwar Rao and Company was established and soon made a name for itself in the construction industry by delivering several prestigious turnkey projects in Andhra Pradesh and Karnataka. By 1980, the company's assets included 150 trucks, eight excavators, 10 bulldozers and 15 drilling machines. In 1985, L.V. Rama Naidu's son, L. Rajagopal, a mechanical engineer, was inducted into the company.
In 1986, when the company went through some tough circumstances, L. Rajagopal's resolve to succeed even got firmer. He acquired a new construction firm, S.V. Contractors, in partnership with his brother-in-law, G. Bhaskara Rao, also an engineer. The first year of operation saw a profit of Rs. 1 crore; by 1990 the company's annual turnover was Rs. 25 crore.
Taking advantage of the new opportunities offered by the liberalisation of the Indian economy, L. Rajagopal diversified from construction business to manufacturing by setting up a pig iron plant of 90,000 tpa. He took inspiration from his uncle Lagadapati Amarappa Naidu and named this new business as LANCO Ferro. LANCO is an acronym for Lagadapati Amarappa Naidu and Company and is tribute to his vision and ideals. In 1991, L. Rajagopal inducted his younger brother, L. Madhusudhan Rao, to manage the business at LANCO Ferro, which was renamed as LANCO Industries in 1993. L. Madhusudhan Rao launched several ambitious initiatives and expanded LANCO Ferro into a fully-integrated plant producing cement, ductile iron pipes and pig iron.
Diversifying to Grow
Diversification through joint venture partnerships became the key word at LANCO as the organisation embarked on an aggressive growth path. In 1995, the Andhra Pradesh government opened the power sector to private players. LANCO entered the power sector against a power purchase agreement with the state government with a 368 MW gas power plant in Kondapalli, commissioned in 2000. LANCO Kondapalli Power Ltd. (LKPL), a joint venture between LANCO and the Genting Group of Malaysia marked a major milestone in the organisation's growth as an independent power producer.
A New Century, a New Vision
In 2002, L. Rajagopal retired from the business to pursue public life, and L. Madhusudhan Rao took over as the Chairman of the organisation. This was a period of change and reorganisation, as LANCO prepared itself to meet the challenges of a new century. LANCO also consolidated its position in the power sector by commissioning large projects, winning bids for several others, and winning a range of business and industry awards and prestigious recognition forums.
Poised for Industry Leadership
LANCO Infratech Limited, a new holding corporate entity, was created in 2006 to consolidate LANCO's diverse operations under a single brand. LANCO decided to focus on its core business - energy and construction - and enter the infrastructure and property development sectors. As part of its business strategy, the organisation has chalked out an ambitious growth plan - in Power and Solar energy. LANCO also envisages aggressive growth plans for EPC with a strong order book growth.