Corporate Updates

MindTree to venture into medical electronics

IT and R&D services provider MindTree Consulting, which announced a major organisational restructuring recently, plans to expand its business line to tap new markets.    The R&D services, which address industries like data networks, cellular networks, voice networks, telecom solutions, computing and storage systems, consumer appliances and industry systems, will enter new segments such as medical electronics, avionics and defence.  The company, whose topline was INR 590.35 crore last fiscal, derives close to 75 per cent of its revenue from the IT services with the balance coming from the R&D services. In the IT services, the company specialises in domains such as capital markets, manufacturing, financial services and travel and transportation.   MindTree President and CEO (R&D Services) S Janakiraman said the company had already started working for a client each in the three new industries.    “We will also look at the Indian market for growth. We expect a number of domestic companies in the consumer appliances, automotive and electronics industries to outsource their design work to companies like ours,” he added.    MindTree is targeting USD 1 billion in revenue, though no time frame has been set. Given an annual growth rate of 38 per cent, the target could be reached by 2014 it was said.    The company is also keen on acquisitions. MindTree, which was listed on the BSE and NSE earlier this year, has a revenue target of $178 million to $180 million for the current fiscal, a growth of 36 per cent at the higher end.    About 41.48 per cent of its shares are held by a clutch of financial institutions and VC firms.    They include Franklin Templeton (2.02 per cent), AIG (3.28 per cent), Walden International (17.81 per cent), Capital International Global Emerging Markets (11.36 per cent) and Global Technology Ventures (7.01 per cent).

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