L&T Technology Services, a subsidiary of construction major Larsen & Toubro, aspires to hit $2 billion in annual revenues by FY26, post its acquisition of Smart World and Communication.

The engineering services company will also focus on developing full-stack technology offerings in next gen communications, smart spaces and cybersecurity, even as it expects to double the revenue of the combined Smart World and Communication (SWC) business to $400 million in the next three years, a top official said.

On Thursday, L&T Technology Services (LTTS) entered into an agreement to acquire SWC—a connected intelligence solution provider with presence in communications, safe and smart solutions and cybersecurity—from parent L&T in a Rs 800-crore deal.

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SWC has an employee base of more than 700 engineers and had posted a revenue of Rs 1,098 crore in FY22.

“From the revenue standpoint, we are at a run rate of $1 billion and SWC’s business will be about $140 million. This puts us in line to achieve $1.5 billion by FY25, and $2 billion shortly thereafter,”LTTS CEO & MD Amit Chadha said.

“Together with SWC, this business is a $200 million plus business, which we want to double to $400 million in the next three years,” he added. LTTS will move SWC business to a pay-as-a-service model, with focus more on technology aspects. This would be by bringing together SWC’s L&T Fusion platform, gEdge data centres, smart metering, LTTS’ i-BEMS (LTTS’ proprietary building automation framework) and UBIQWeise (proprietary cloud IoT platform) among others.

“From a master system integrator, this business will become a master software services integrator,” Chadha added.

With four of the top 10 telecom companies and six of top 10 original equipment manufacturers (OEMs) in the US and Europe already being customers, LTTS expects the integration of SWC to bring “big gains” from the telecom sector. With 5G expected to have a global GDP impact of $1.3 trillion by 2030, the companies together are in a “stronger position” to win and execute large deals, he added.

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Other opportunities will come in from Sustainable Spaces (a $390-billion global opportunity) and cybersecurity (projected $376 billion global opportunity).

Earlier in May 2017, the company acquired Silicon Valley-based design services provider Esencia Technologies for $27 million (about Rs 173.4 crore) in an all-cash deal. Later in September 2018, it acquired Bengaluru-headquartered Graphene Semiconductor for Rs 93 crore, followed by US-based Orchestra Technology in October 2020 for $25 million (Rs 187 crore).