Engineering heavy-weight Larsen & Toubro’s IT solutions provider, L&T Infotech, is looking to grow its business post restructuring itself into two divisions, services and industrials. The company’s two newly-appointed chief executives, Mukesh Aghi and Vivek Chopra, spoke to FE’s 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 haven’t 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