The Hindu Business Line : MindTree looking at mergers, acquisitions

Bangalore, Dec. 3 IT and R&D services company MindTree Consulting is considering mergers and acquisitions in specialised R&D verticals it has added to its portfolio.

Mr S. Janakiraman, President and CEO, R&D Services, MindTree Consulting, said: “The company has recently created and incubated industry groups in underserved areas - avionics, medical and defence, realising the phenomenal opportunities in these markets. We also looked at the semi-conductor design area with the acquisition of Purple Vision. We are continuously looking at inorganic growth and opportunities for M&As in these areas of key specialisation, apart from hiring domain specialists and organic growth.”

On the IT services front, MindTree is looking to create industry groups in the emerging areas of retail, telecom and media.

Currently, the key areas that the company is working on are capital market, insurance, manufacturing and travel and transportation. Expanding its industry verticals and creating industry groups is part of MindTree’s growth plans towards becoming a $1-billion company.

In line with its goal to reach the billion dollar club, the company has announced an organisational restructuring (effective from April 1, 2008) that will see over 150 leaders within MindTree getting “enhanced responsibilities.”

Mr Ashok Soota, current Chairman and MD, will assume the role of Executive Chairman.

He will continue to be the Chairman of the Board. Mr Salil Godika will take on the role of Chief Strategy Officer.

Bagchi as ‘Gardener’

COO Mr Subroto Bagchi will return to India from the US as MindTree’s ‘Gardener’ – a role that has been specially created to “strengthen the emotional infrastructure” of the company which was started in 1999.

He will work closely with the top 100 leaders at MindTree. Mr Bagchi will also be involved in the company’s association with the educational community in India and abroad.

Mr Krishnajumar Natarajan, President and CEO of MindTree’s IT services business, will become the CEO and MD, responsible overall for both IT and R&D services. Executive Vice-President Mr N.S. Parthasarathy will be the Chief Operating Officer. The R&D Services business will continue to be led by Mr Janakiraman as President and CEO.

Mr Soota said: “These changes are aimed at giving young leaders positions of greater responsibilities. This is about creating MindTree Version 2.0 – our plan for the future. With this, we are now ready for the next big thing. We have grown faster than any IT services company – we grew to $100 million in just six years. Going ahead, we have to look at new things, new businesses.”

Refusing to disclose the timeframe by which he hoped MindTree would reach the $1-billion mark, Mr Soota said: “If we were to achieve our target by 2040, we need to have a 38 per cent annualised growth. It’s work in progress.”

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