LTIMindtree, post the merger, will aim at achieving industry-leading growth as the entity will now be able to cross-sell across industries, get larger deals and go for larger inorganic opportunities, Debashis Chatterjee, CEO, told businessline.
LTI-Mindtree merger takes effect; latter to delist from bourses on Nov 24L&T Group Chairman AM Naik noted that the combined entity, LTIMindtree, will likely cross $5 billion in revenues by next year
“There are quite a few industries where we will have revenue in almost billion dollars. The BFSI vertical would be almost a billion dollars and manufacturing will be over half a billion. This gives us confidence in terms of having more domain depth in the industry,” Chatterjee added.
The merger will enable the entity with opportunities to cross-sell and upsell across industries. “With the combined strength, we can enhance the work with clients we have not concentrated on in the areas which were not our strong suits. This will increase our wallet share within specific clients,” he said.
Additionally, the entity will also be able to get and participate in larger deals, given that the size of the company has now expanded, he added.
The merged entity will also be able to have strong partnership status with all the hyper scalers, which will be important for growth going forward, as the IT industry has been highly dependent on the work done with hyper scalers, the CEO noted. Chatterjee also believes the synergy will help build a strong end-to-end capability across the entire customer journey as the specific strengths of both entities will come together.
Strong balance sheet
He further noted that the two entities coming together gives a strong balance sheet. “At an appropriate time when we will look at inorganic opportunities, we will be able to go for larger inorganic opportunities given the strong balance sheet,” he said. Given that the merger brings the total headcount to 90,000 employees, Chatterjee said this will enable the entity to better leverage its strength at a time of talent crunch in the industry.
In terms of integration challenges, Chatterjee said the company has addressed them over the last six months. The employees are excited as there will be more opportunities and client sentiment too has been positive. “We will continue as a combined entity in our journey of profitable growth, and we would like to make that journey industry-leading,” Chatterjee said.