We aim to touch $1-billion mark by the end of FY13

Written by Shruti Ambavat | Updated: Feb 15 2013, 09:34am hrs
Engineering heavy-weight Larsen & Toubros IT solutions provider, L&T Infotech, is looking to grow its business post restructuring itself into two divisions, services and industrials. The companys two newly-appointed chief executives, Mukesh Aghi and Vivek Chopra, spoke to FEs Shruti Ambavat on how do they plan to leverage the L&T brand and reach the number one position.

What is the way forward, post the restructuring exercise

Mukesh: The whole objective of two CEOs is about working closer to the customer. I have a set portfolio of verticals and so does Vivek. We are getting to know our customers better and see what their needs are and finally go up the value chain.

Vivek: Restructuring was for higher level of focus and we aspire to be a tier-1 company. We are going to touch a $1-billion mark by the end of the current financial year. The intent was to make one plus one become hopefully three for the company. Both of us have worked in similar industries and backgrounds and would like to work together in planning how to take the company ahead.

With two new heads, are other operations seamlessly collaborated

Vivek: We have our delivery centers in Toronto, Costa Rica and Ireland. The deliveries are customer centric and verticalised based on customers and geographies. We operate as two unified divisions under L&T Infotech.

How do you see the pressure on margins due to pricing pressure

Mukesh: Pressure on pricing is normal; the focus is to provide better value to the customer.

Vivek: You have to move up from being a commodity player, where people are being billed by the hour, week and month. They are doing either fixed price outcome based projects or work on managed services basis. The margin pressure will remain, you have to just manage your costs and optimise your revenue.

Which are the new geographies that you are looking at for expanding

Mukesh: I think we are in all the geographies already like Europe, North America, South Africa and Asia. We are just trying to get deeper in these regions.

Vivek: We are looking at increasing presence in Eastern Europe, though havent firmed up anything yet.

Is any acquisition on the radar today

Mukesh: There is nothing yet, but we keep on looking at potentials.

Vivek: As a part of the public company, we will be open to acquisitions that come our way. There are a few in early stages in India and abroad.

Is there a new sector that you would like to enter

Mukesh: Yes we are entering healthcare in the US because there is a lot of efficiency required in the sector.

What are the hiring plans, both offshore and onshore

Vivek: We have about 1,800 employees in the US and Europe and a total of 18,000 employees as on December 2012. We plan to grow above industry target and and hire accordingly.

Is the company still looking at the IPO plan

Mukesh: We are very new into the company and are not involved in that at all. Vivek: That is a board decision.

Does the company have any other fund raising plans

Mukesh: We dont have any other fund raising plans as we are satisfied with our cash reserves and plan to grow through hiring.

Vivek: Our aspirations are to grow above industry average (more than 15%).

How much of your business is coming from non-linear segments

Vivek: Investments are being made in areas like cloud, mobility and big data as these are areas that cannot be ignored. We have got people working on it and have projects in it. We are starting to see work building up. But it is still too early. We see good tractions in this regard from the US and Europe while India is still starting up.

How much revenue do you receive from the US, Europe and India

Vivek: We have 70% of our revenues coming in from the US and 30% from the rest of world, of which India contributes less than 5%.