L&T opens new software development center

L&T

Infotech, wholly-owned subsidiary of Larsen & Toubro Limited is looking

at a turnover of $1 billion by 2010. "We plan to exceed $250 million in

2006-07 and are looking at a target of $1 billion by 2010”, said A.M.Naik,

chairman and managing director of L&T. The consolidated profit after tax is

expected to grow by 11-12 per cent of expected revenue in 2007 from Rs 72 crores

i.e., nine per cent in 2006, he said.

Inaugurating a new technology campus of L&T Infotech here, Naik, said,

“We wanted to make it one of the best in Bangalore and we have done it. The

technology campus would mark up our capability to offer high—value services to

our expanding customer base.”

Built at a cost of Rs. one billion, this campus is a part of a major

expansion plan encompassing the construction of four new software development/

technology centers across the country with a total investment of Rs 600 crores.

“The main strategy to venture into IT sector was to retain the customers.

To improve the L&T services, initially the sample products will be used

internally and then will be upgraded and made available for others,” Naik said

while addressing the press conference.

At present IT contributes three per cent of the group's revenues. The

company is expecting a 10 per cent increase by 2010.

Commenting on competition from his IT counterparts, Naik said, “We are not

here to compete with others. Our strategy is to build L&T Infotech more

towards providing value

added services.”

He also said they want to make it a strong mid size company by March 2008 and

once it is well positioned and well accepted world wide, with new assets,

campuses, etc, they are coming out with IPO.

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