Focusing more on growth, than cost factor: Mindtree

Integration Process

- L&T Infotech, Mindtree announced merger plan in last May

- Integration committee has multiple tracks

- It focuses on operation track, finance track and many more

- Despite fears of slowdown in the US and Europe, Mindtree is confident of growth momentum

Bengaluru: The merger of Mindtree and L&T Infotech into a single entity is all about driving growth than a move aimed at cost savings as both companies have many synergistic capabilities to cash in emerging opportunities in the global market.

Speaking to Bizz Buzz, Venu Lambu, Mindtree's Executive Director & President (Global Markets), said that both the companies formed integration committee that is working on various areas of operations for a seamless merger.

"We are complementary in nature. There are complementary capabilities. For example, there is no travel & hospitality vertical on L&T Infotech. So, what I am saying is there are very synergistic capabilities on both vertical and horizontal levels.

"Secondly, this integration is a story about growth. This is not about cost savings, though it will come naturally because of the economies of scale. The primary mandate here is to drive the growth," Lambu said.

When asked about likely redundancies that may arise due to the merger, he said, "redundancies are not in our mind. It's all about adding more value to the customers and getting more growth opportunities in the global market."

Both L&T Infotech and Mindtree announced a merger in May this year that would create a bigger entity LTIMindtree. The combined entity with a top line of about $3.5 billion will be the sixth largest IT services company in India. For a seamless integration, both companies have formed an integration committee. "We have formed an integration committee and the integration committee has multiple tracks like operation track, finance track and many more. Those teams are working under those frameworks to keep everything ready, so that once we get the approval; we know to how to integrate our internal systems, integrate employees. So, a bit of homework is happening at the backend," Lambu said.

"But at the market, we are working as independent entities and wherever we think, there are synergies and we can come together and add value to the customers, we are doing it," he added.

Mindtree has posted industry leading growth rate in revenue in the first quarter of this financial year. It has also seen expansion in its operating margin when its larger peers have seen fall in margin owing to rising cost pressure. The company's management has said that the Bengaluru-headquartered firm is confident of maintaining the growth momentum in the near-term despite fears of slowdown in the US and Europe.

We are complementary in nature. There are complementary capabilities. For example, there is no travel & hospitality vertical on L&T Infotech. So, what I am saying is there are very synergistic capabilities on both vertical and horizontal levels

- Venu Lambu, ED & President (Global Markets), Mindtree