New Delhi: Larsen & Toubro, the engineering giant has big plans for its software division. L&T Infotech plans to become a billion doller company by 2011 and to list in the first half of 2008.
Already, the division is preparing for the exercise.
At the inauguration of its Rs 100-crore global headquarters in Mumbai, Chairman Anil Naik said L&T Infotech would join the billion-dollar software club by 2011.
He said launching an IPO for L&T Infotech would help to unlock shareholder value and let retail investors participate in Larsen & Toubro's success.
"We are growing at the rate of 45-50 per cent and we will have revenues of $ 450-500 million before we go to the market," said Naik.
In preparation L&T Infotech will double its staff strength adding 9,200 engineers at six locations in India and it will seek acquisitions.
L&T Infotech's CEO VK Magapu said his company would prefer to acquire a company with revenues of about USD 50 million.
"We are looking at niche companies, which will deliver immediate synergies coupled with offshore expertise," said VK Magapu, Chief Executive Officer of L&T Infotech.
Although Larsen & Toubro was the first Indian company to import an IBM mainframe in the 1960s and the first SAP vendor in India, it is nowhere near the big boys of the Indian software industry.
Its plans for its software division are designed to get it into the billion-dollar club.
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