Mumbai, Mar 9 (IANS): Infrastructure giant Larsen and Toubro (L&T) Friday said it has appointed K. Venkataramanan as its chief executive and managing director while A.M. Naik would continue as executive chairman for another five years.

Naik is the current chairman and managing director of the $11.7 billion conglomerate which has major presence in sectors including engineering, construction, and financial services.

The group has been on the look-out for Naik's successor and said that it had decided to bifurcate the roles of chairman and managing director into two positions.

Venkataramanan would be responsible for the businesses of the company while Naik would focus on completing the company's restructuring process.

L&T had started simplifying its various business and created 10 independent companies and 7 Subsidiaries with a view to bringing focus, autonomy and accountability and had engaged the services of the global strategy firms for the same.

Venkataramanan who is currently the whole-time director had joined L&T as a graduate engineer trainee. He was elevated to the L&T board in 1995.

"In line with the vision of the company to become an Indian multinational as also looking at the current global competitive environment, it needs to develop leaders who will manage the Company, going forward," L&T said.

"In view of the above transformation phase that L&T is going through, the board decided that there is a need for continuity and accordingly requested Mr.A.M.Naik, to continue for a period of 5 years as executive chairman of the group".

The scrip reacted positively to the news. It was trading 4.46 percent higher at the Bombay Stock Exchange at Rs.1,292, slipping from the day's high of Rs.1,304.