A M Naik appointed as Mindtree's new chairman1 min read . Updated: 18 Jul 2019, 11:01 AM IST
- Naik will become the fourth executive from L&T to join the board of Mindtree
- Naik has been the group chairman of L&T for the past 20 years
Mumbai: Bengaluru-based IT services firm Mindtree Ltd., which has recently been acquired by engineering giant Larsen and Toubro Ltd. has appointed A M Naik (the current chairman of L&T) as the company's new non-executive chairman with effect from Thursday, according to an exchange filing by Mindtree.
Naik replaces Krishnakumar Natarajan, who resigned as the chairman and a board member from Mindtree on 5 July.
On Tuesday, L&T became the new promoter of Mindtree after buying a 60.59% stake in the latter and inducting three nominees from L&T as directors in Mindtree.
Mindtree's four founders, Subroto Bagchi, NS Parthasarathy, Natarajan and Rostow Ravanan, who together hold around 13.32% in Mindtree and served as directors on the company's board for two decades, quit the company after L&T succeeded in concluding its open offer on 30 June.
Mindtree, in its exchange filing, said that the company's nomination and remuneration committee and the board of directors appointed Naik after a board meeting on Wednesday.
Naik has been the group chairman of L&T for the past 20 years. He has been serving the $18 billion conglomerate for over 54 years.
"Naik mirrors the defining characteristics of the company, viz., professionalism, customer-centricity, fidelity to core values, and a passionate commitment to serving the interests of country, cause and community," read the exchange filing.
Naik was instrumental in setting up L&T's Leadership Development Academy near Mumbai, one of the few 'corporate universities' in India.
Under Naik, L&T's market capitalization, which was around ₹2000 crore in 1999, has soared to at least ₹2 lakh crore in 2018.
"His thrust on profitable growth ensured consistently impressive gains on both parameters...L&T's multi-geographic canvas is the outcome of his drive to internationalize operations and set global benchmarks across businesses. Overseas revenues today account for 30% of turnover," said the filing by Mindtree.
On Tuesday, L&T completed its Rs.10,000 crore acquisition of Mindtree, which marked the country's first hostile takeover in the IT industry.
Following an annual general meeting on Tuesday, three nominees from L&T were inducted on the board of Mindtree as directors.
Naik will become the fourth executive from L&T to join the board of Mindtree.