Multi-billion-dollar conglomerate L&T is seeking to expand its information technology and technology services businesses through acquisitions. This is among the top priorities for Anil Manibhai Naik, Group Executive Chairman, who is in the midst of restructuring subsidiaries.
As part of this exercise, L&T will exit non-core business areas or dilute stakes and consolidate its core areas, including infrastructure, technology and defence.
Speaking to BusinessLine , Naik said that both from the divestment and acquisition point of view, mergers and acquisitions are an important route to rationalise the business portfolio.
“We have identified some small businesses that are less than ₹1,000 crore for divesting. We are looking at listing the IT and technology services business and after that could be the electrical switches business. Acquisitions in tech services and IT verticals are definitely part of the strategy.”
Naik, who completed 50 years at L&T, has given himself another two-and-half years to carry out the restructuring and leave a strong platform for his successor.
“My challenge was to build L&T to this extent. The future challenges will be to consolidate what we have and become smarter in every business to compete against global majors,” he said.
Naik also said the defence sector will be key for the company. “We will invest about ₹100 crore to expand our gun-manufacturing facility in Pune,” he said.