​L&T Technology Services to focus on top 30, adjacent customers

Rajesh Kurup Mumbai | Updated on January 16, 2018 Published on September 28, 2016

Keshab Panda, Managing Director and Chief Executive Officer, LTTS

L&T Technology Services Ltd (LTTS), Larsen & Toubro’s engineering and research and development arm, is to focus more on its top 30 customers who contribute 65 per cent of its revenues. The company will also concentrate on adjacent companies that work in the same space as its clients.

This is under the company’s policy, T-30 and A-3, which came into effect in April 2016, LTTS Managing Director and Chief Executive Officer Keshab Panda told BusinessLine​ in an interview.

LTTS revenues from T-30 accounts stood at 65 per cent of the total in FY16, which is expected to grow at the same or a higher pace this year, he said, declining to provide “futuristic” statements.

Some of the top customers for LTTS are Danaher, Scania, UTC, P&G, John Deere and BMW, among others, according to the Draft Red Herring Prospectus (DRHP) filed with market regulator SEBI.

The company has developed Internet of Things (IoT) solutions such as UbiqWeise and iBEMS in emerging technology areas to support its customers, Panda said.

LTTS has also tied up with Intel as its go-to-market partner for its smart buildings platform, iBEMS, which enables Net-Zero, energy generation management, predictive and preventive maintenance to help steer-away from energy consumption to energy generation and helps customers save up to 40 per cent of energy costs.

Using UBIQWeise, LTTS has designed a smart connected thermostat that is WiFi capable and controls all aspects of indoor air leveraging IoT, cloud and mobility solutions. This solution has been rolled out in the North American market, Panda said.

For the company, Europe and the US is about 80 per cent of the market, and these geographies are expected to grow on a revenue basis even though it could be steady on a percentage basis.

The company is also looking at focusing more on Japan and Korea in Asia, he said, adding LTTS does “very little work” in West Asia, while exposure in the UK is close to zero.


Further, LTTS has 168 patents of which 34 are owned by the company and 134 are co-authored with global clients. The company is also looking to monetise them.

“We will look at monetising the patents, which are filed across different geographies.” However, he did not give a time line for the monetisation.

LTTS debuted on September 23, following a $134-million initial public offering (IPO). The Rs 900-crore IPO of L&T Technology Services was oversubscribed 2.53 times during September 12-15. The price band for the offer was fixed at Rs 850-860.

This is the second company from the L&T group to hit the market with an IPO since July, when L&T Infotech had launched a public offer. The flagship Larsen and Toubro is already listed.

Published on September 28, 2016
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