NEW DELHI: After much drama, engineering conglomerate Larsen & Toubro (L&T) completed its acquisition of Mindtree on Tuesday, with induction of its three nominees into the Bengaluru-based mid-tier IT firm during its 20th annual general meeting.Addressing the queries of Mindtree’s shareholders, L&T assured them that it will provide further impetus to the IT firm’s growth by providing board-level oversight and relevant client connects.
L&T’s chief executive officer and managing director S N Subrahmanyan complimented Mindtree founders and former promoters for creating a billion-dollar revenue business in just 20 years, with 40 per cent return on capital.Subrahmanyan asserted that while L&T manages multiple IT businesses that can add value to Mindtree and its stakeholders, “Mindtree will be kept distinct from L&T Infotech (LTI), L&T Technology Services (LTTS) and the recently formed business division L&T-Nxt”.
“These entities would run at an arm’s length. There are other major conglomerates in India like Tata, Mahindra, Hinduja and HCL, which have also been running multiple IT companies successfully,” he said.
Subrahmanyan said the management will be focused on delivering best levels of service to clients. “We will strive to provide new-age technologies, services, digital and content in an ever more increasing manner to take the organisation forward,” he added.