L&T Tech unveils growth plans
L&T Technologies Services, a wholly-owned subsidiary of Larsen & Toubro (L&T), has unveiled plans to achieve revenue of $1 billion and be one of the world’s top technology service providers.
The company plans to achieve this target by focusing more on markets such as Japan, the Middle East and Korea as well as through acquisitions.
“Currently, 55 per cent of our business comes from America, 22 per cent from Europe and the rest from the rest of the world. We have now decided to focus more on Japan, the Middle East and Korea. We have done well there but these are markets where we want to put more efforts to achieve growth,” Keshab Panda, Chief Executive, L&T Technology Services, said. .“We will continue to grow in the U.S. and Europe but we will be very selective to do projects in India. Though we are a part of L&T group, not even one per cent of our revenue comes from L&T which is one of our customers,” Dr. Panda said.
Apart from organic growth, the company, as a part of its strategy, has decided to go in for acquisitions to achieve the desired scale.
“We will be announcing an acquisition very soon, and we are looking at acquiring many companies. But it must satisfy our requirement. We are not chasing big M&A deals and we are very careful in selecting the companies we will acquire. We are keen on companies that give us technology, market access and leadership we don’t have,” Dr. Panda added.
The company, is also planning to hire around 5,000 engineers in the next two years to maintain its growth momentum. At present, it has 9,200 engineers out of which 5,000 were hired in the last four years.
The company focuses on the engineering service space and offers design and development solutions throughout the entire product development chain across industrial products, medical devices, transportation, telecom and hi-tech and process engineering. It has over 170 global customers, including 42 clients who are Fortune 500 companies.