| The company is hoping to bring two or three $40-$45 million companies into its fold over three years. |
| L&T group is also planning a foray into business process outsourcing (BPO), which may involve hiving off L&T Infotech's engineering process outsourcing business into a separate company along with strategic acquisitions. |
| Acquisitions will include Indian as well as US-based companies operating in enterprise resource planning and banking software solutions. |
| "We are looking at buying a majority share (51 per cent or more of its equity holding) in these target companies. Our idea is not to take over a company and rip it apart completely, we want the company's management to continue running the company post-acquisition too," said V K Magapu, chief executive officer (CEO) of L&T Infotech. |
| The company, a 100 per cent subsidiary of the L&T, is also the conglomerate's maiden IT venture but the company has bigger plans to cash in on the outsourcing rush the country is experiencing at present, revealed Magapu. |
| "We are looking at high-end BPO work including value-added engineering. If our engineering process outsourcing business grows to fairly sizable dimensions then we can hive it off to form a separate BPO company under the L&T banner. We are also scouting around for acquisitions in the same area," confirmed Magapu. |
| The company expects the proposed acquisitions along with organic growth will propel its turnover from the current Rs 369 crore (2002-03) to Rs 2,700 crore ($600 million) by 2007. |
| The company, which grew by 40 per cent last fiscal, is hoping to notch up a 75 per cent growth in the current fiscal. |
| L&T Infotech's initial public offer (IPO) is expected in 2005 when it hopes to scale a turnover of Rs 900 crore ($200 million). L&T is looking at divesting around 20-25 per cent of its stake through the IPO. |
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