Global headquarters of L&TI at Powai campus inaugurated
Capex for all six centres will be Rs. 600 cr. IT campus in Pune in the next 12-18 months
MUMBAI: The global headquarters of Larsen & Toubro Infotech (L&TI), the 100 per cent Larsen & Toubro-owned company, was inaugurated on Friday at the existing L&T Powai campus here.
The global headquarters, spread over 100 acres, is a part of the current expansion plan, encompassing the construction of six new software development/technology centres across the country.
While inaugurating the centre, A. M. Naik, Chairman and Managing Director, L&T, outlined his vision of growth for L&T and L&TI on the twin themes of major export thrust for all L&T products and global solutions foray in the knowledge business.
The company has around 7,300 employees now and, according to Mr. Naik, this figure will go up to around 10,000 by the end of the current year. The capital expenditure for all the six centres will be Rs. 600 crore. The new facilities will be located in Mysore, Bangalore, Chennai, Mumbai and New Mumbai. Besides, the company is building an IT campus in Pune in the next 12-18 months to house 2,500 staffers.
For engineering BPO services, the design centre headquarters will be Vadodara, where two buildings are coming up. The campus will be built over 20 years but over the next two years, the capital expenditure plans for this centre will be around Rs. 150 crore. It houses 1,700 employees with around 1,000 staff doing L&T work and the rest involved in auto vertical and off-highway vehicles. The company will set up engineering design centres in Faridabad and Powai (West). For IT and engineering services, the company will decide on a fourth centre either in northern or in southern India.
"L&T Infotech will focus on banking, financial services and insurance (BFSI), manufacturing and communications industry segments, '' Mr. Naik said.
"In the first half of 2008, we will go in for an initial public offering (IPO). The company will be mature enough to stand on its own at the time of its IPO,'' said Mr. Naik, adding that the company would not go in for a private placement and would capitalise L&TI only closer to the IPO date. More than 95 per cent of L&TI's revenues are from exports with North America contributing 68 per cent, Europe 18 per cent, Japan 7 per cent and China and Asia Pacific around 3 per cent.