LTIMindtree signs $450 mn deal, its largest yet, with agribusiness firm

Seven-year contract includes AI-powered model for application management, infrastructure support and cybersecurity; firm sees boost in shares after announcement

Mid-tier IT firm LTIMindtree on Monday said it has signed a $450 million deal with an agri-business company, marking its largest deal since the two companies, Larsen & Toubro Infotech (LTI) and Mindtree, merged. 

 

While LTIMindtree did not disclose this client's name, the deal will provide a big fillip to its growth in an uncertain economic environment.

 

As part of this deal, which spans seven years, LTIMindtree will implement an artificial intelligence (AI)-powered operating model to deliver application management, infrastructure support, and cybersecurity services. 

 

The company’s shares were up 6.97 per cent, at ₹4,942 per share at the end of the trading day. The share price was up 7.6 per cent during intraday.

 

“Securing this large deal marks a pivotal milestone as we transform to an AI-driven business model, helping our clients enhance productivity," said Venu Lambu, chief executive officer-designate and whole-time director. 

 

Information technology (IT) service providers are banking on mid-sized and large cost-take-out and efficiency improvement deals at a time when discretionary spending budgets by clients are frozen amid the threat of a tariff war and its eventual fallout. Customers are looking at tightening their spending and saving the last dollar rather than spending more on new age technologies.

 

Mid-tier companies stand to gain in this environment because they are often more aggressive in chasing deals at margins that are difficult for large IT companies to manage.

 

Lambu told Business Standard during an interaction last month that vendor consolidation will be one of the key growth drivers this financial year as clients increase reliance on a few providers for end-to-end solutions. It had more than $3 billion in vendor consolidation in the pipeline out of its $6 billion order book at the end of March.

 

Chief Business Officer Samir Gosavi said it was a major win for the consumer services business, and the company’s AI-driven operating model will drive measurable business impact in an industry that's evolving rapidly.