L&T chief says Mindtree will remain independent post recent acquisition

Larsen and Toubro (L&T) chief executive and managing director SN Subrahmanyan has said that recently acquired information technology services firm Mindtree would be run as a separate entity and at an arm’s length from L&T Infotech and L&T Technology Services.

L&T was categorised as a promoter of Mindtree last week, having recently acquired 60.06% stake in the company. On Friday, Mindtree co-founders and board members Krishnakumar Natarajan (chairman), Rostow Ravanan (chief executive), and Parthasarathy NS (vice-chairman) quit the firm. Then on Monday, Mindtree shares fell 10.4% to close at Rs 774 apiece on the BSE.

Mindtree has also called for a board meeting on 17 July.

Subrahmanyan said that it was “inappropriate to speculate about the future structure now.” 

He added, “The value system, ethos, fair business practices and employee focus have made L&T a preferred employer in the country. We find these attributes to be more than handy and relevant to protect and build on the unique employee engagement culture that Mindtree is known for.”

Subrahmanyan said that continuity would be the key theme in the management at Mindtree. “No position is sought to be disturbed at Mindtree, and no changes are contemplated right now,” he added.

Speaking on behalf of L&T’s management, Subrahmanyan said that an announcement of a new chief executive for Mindtree would be done in due course. 

He added that there is hardly any possibility of a direct conflict between L&T and Mindtree as the two operate in vastly different areas, with a minimum client overlap.

Front runners for Mindtree chief exec

Meanwhile, The Economic Times reported that the front runners for Mindtree’s chief executive post are Cognizant Technology Solutions’ former senior executive Debashis Chatterjee and Rajeev Mehta, who was Cognizant’s president.  

While Chatterjee quit as global head of delivery at Cognizant in May, Mehta joined L&T after quitting Cognizant as president in April.