36 L&T Information Technology Ltd - Bouncing Back

alt="+l&t.jpg (19745 bytes)" border="0" hspace="2" vspace="2"> CHIEF EXECUTIVE: AS Godbole * PRODUCTS AND SERVICES: Software Development, Consultancy, Open System Platform, ERP Implementation color="#FF0000">* AGENCY OPERATIONS: Seagate Software size="1" color="#FF0000">* START-UP YEAR: 1997 color="#FF0000">* EMPLOYEES: 872 color="#FF0000">* DEALER OUTLETS: 80  color="#FF0000">* QUALITY CERTIFICATION: ISO 9000, SEI Level 3 size="1" color="#FF0000">* ADDRESS: Saki Vihar Road, Powai, Mumbai 400072 * TEL: 8581003 size="1" color="#FF0000">* FAX: 8581592/1612 color="#FF0000">* WEB SITE: www.ltitl.com PERFORMANCE HIGHLIGHTS l Growth at 65 percent to reach Rs 91.04 crore. l Profit after tax is Rs 17.5 crore. l Formation of new SBUs and geographical expansion. border="0" hspace="2" vspace="2">

Instituted as a separate company last year, L&T Information Technology Ltd
(LTITL) grew by 65 percent to touch a revenue of Rs 91.04 crore with a profit of nearly
19.3 percent on sales in 1997-98. Previously, it was a part of Larsen & Toubro's
infotech business division, which dealt in data products and printers. The software
development revenue amounted to Rs 55.07 crore in the year 1996-97.

When L&T's infotech business division started declining, the company was quick to
identify and move into a high-growth area. After this, the company restructured itself on
a Strategic Business Unit (SBU) model, a clear focus on strategic alliances with major
clients-leading to the formation of client-exclusive and dedicated offshore facilities
managed by LTITL.

Now LTITL is positioning itself as a solution provider for a wide range of
applications. Staffed by over 1000 professionals with a wide range of project management
experience, LTITL currently provides software solutions that can meet the entire range of
IT-related requirements. LTITL has received the SEI Level 3 rating and ISO 9001
certification for its software development process. LTITL's strong global presence is
clear from the fact that it has several branch offices, in the US, UK, Sweden and Japan.
In addition, it has business associates in France, Switzerland, Germany, Austria, Sweden,
the Netherlands, and Australia.

The traditional end-user segments addressed by the company include
manufacturing/engineering, insurance, telecom applications, transportation and
automobiles, and banking. The project areas include remote-maintenance of legacy systems
on IBM mainframes, automated Y2K-compliance solutions, web-enabled applications
development in open environments, high-end telecom solutions, SAP R/3 services, high-tech
CAD/GIS services, and the like. Over the last couple of years, LTITL has built up large
capacity for executing large assignments.

The company reorganized into SBUs, formed from a mix between business segments and
technology segments. And it put an increased thrust on marketing in the global
marketplace. A special systems group for real-time, process control, and embedded systems
was also put in place. Similarly, a network administration group to manage L&T Group's
global network was formed. The company is taking special steps to control attrition with a
new thrust on HR-by giving motivation, career rotation, and leadership skills.

Plans for 1998-99 include over 75 percent growth in business revenues, creation of
offshore development centers for strategic alliance partners, opening of four new offices
in the US, and a third office in mainland Europe, commissioning of a fifth development
center at Mysore, in addition to Mumbai, Navi Mumbai, Pune, and Chennai, and preparing for
upgradation to SEI's CMM Level-4 rating.