Mumbai, April 2 :    Mumbai, April 2:  Financial institutions have asked management consultant McKinsey to take a close look at the diversified business portfolio of the engineering, procurement and construction major, Larsen & Toubro (L&T) Ltd. Sources say the consultant has been told to examine whether L&T should continue with businesses which fall outside its core area of engineering. McKinsey will also define the future focus. The move comes against the backdrop of growing unease among Fis, which feel the engineering and construction giant was losing its core competence by diversifying into too many areas. These institutions had made it clear that they were not pleased with the company?s wide range of activities.?Though profits in the company have grown, the rate of increase has been smaller. This is largely due to diversification into many businesses,? sources said. Since margins in the company?s commodity business were under severe pressure, the institutions want the company to outline its future scenario. At present, L&T has four major lines of business. These include engineering and construction (contributing 54 per cent to its sales), cement (23 per cent), electrical and electronics (11 per cent) and earth moving equipment (5 per cent). Apart from this, the company has included information technology as a new focus area. The eight-member institutional committee scouting for a successor to S D Kulkarni, the present managing director and chief executive who retires on April 27, had appointed McKinsey and a Swiss firm, Egon Zehnder International to study the company?s areas of operation. Sources say the institutions want an outsider to succeed Kulkarni, instead of senior executives from the company. Earlier, M Naik and A Ramakrishna and Y M Deosthalee were reported to be the front runners for the post. Sources say a similar situation had arisen in 1994 when the FIs had chosen ?dark horse? Kulkarni even though Naik was a front-runner. Though the Ambanis, who still remain the largest private sector shareholder, had supported Naik last time, it is not known whether they continue to do so this time around.