L&T Infotech eyes US firm in manufacturing domain

MUMBAI: L&T Infotech, the IT subsidiary of the engineering major L&T, on Thursday said it will acquire a US firm in the manufacturing vertical for about $300 million within a year.

L&T Infotech, which aims to be a niche player in the manufacturing domain, said the acquisition would help it to further consolidate its position in the segment, which contributes around 65 per cent of its total revenue. The remaining 35 per cent comes from engineering, banking and financial segments.

"We have started scouting for a firm in the manufacturing vertical for acquisition. The deal is likely to be signed within a year," Vijay K Magapu, Chief Executive Officer of L&T Infotech said.

Having set a target of recording $1 billion revenue by 2010, L&T Infotech is hopeful of clocking $415 million turnover by the end of this fiscal from $287 million in the last fiscal, he said.

Going forward, he said, there would hardly be any changes in the ratio. L&T Infotech generates around two-thirds of its revenue from the US and the remaining from other parts of the world, including India.

Domestically, the company would invest around Rs 250 crore to increase the office space, Magapu said, adding that "the expansion would be done in the existing centres."

Meanwhile, the proposed IPO of the company may be deferred, Magapu said declining to give details. "All the time we said we would do it when the conditions are right and don't think the time is right now," Magapu said.

The parent company had earlier announced that L&T Infotech would be listed in the second half of next fiscal.