What are the key advantages from the L&T Infotech and Mindtree merger?
Answer
Answer
Here are some merits to the merger as I see it.
a) The merger of LTI and Mindtree creates an entity with combined sales of $3.5 billion, over 80,000 employees and 681 clients on its rolls. By becoming the sixth largest IT company in the big league, LTI Mindtree can bid for prestigious $100 million projects.
b) LTI and Mindtree have been making joint bids for projects with specialization focus. For instance, LTI is more active in core IT and engineering and Mindtree has strong franchise in digital space. That is where growth could come from.
c) There is a big DNA shifted that has been plotted. For example, while LTI has an L&T DNA, Mindtree is a professional company by first generation entrepreneurs. Remember, the CEO of Mindtree, Debashish Chatterjee, will be the CEO of the merged entity.
d) While LTI is a stable and reliable model, Mindtree is the more high growth on the cutting edge. The merger will build stability and growth into the business model of LTI Mindtree. This will help them tap the explosion in demand.