Chairman’s message

We have a great pipeline of emerging leaders and we have consistently delivered world-beating projects that make our large competitors admire us. Our people believe that Mindtree is among the best places to work.

Dear Shareholder,

This past year has been good in many ways. Thank you for your support, without which your management team could not have delivered the results it has. More on that in Chief Executive and Managing Director Krishnakumar (KK)’s letter to you in the next page.

In this annual communication, I want to draw your attention to a few big-picture issues that concern you as a shareholder of Mindtree. Before I do that, please join me in congratulating KK on his election as Chairman of the National Association of Software & Services Companies (NASSCOM) for 2013-14. It is a recognition of his personal contributions and active engagement with NASSCOM over the years; it is also a recognition for Mindtree as an organization.

NASSCOM has recently announced its ambition for 2020. From the current base of USD 108 billion, the industry body feels, we should all aim to achieve USD 300 billion in the next six years. This is an ambitious goal. However, it is based on reasonable assumptions that take into account exports, a growing domestic market and growth fuelled by the e-commerce segment. What this means is two things: stay invested in the IT sector and if you have a young one in your family contemplating IT as a career, please assure him or her that we will remain a great industry to work for.

Now let me shift to a very important matter that has to do with the internal challenges that every company must tackle. While there are many such challenges, some of which are specific to individual companies, there are some that concern every organization. One is transition and pipeline of leadership. The other issue everyone must deal with has to do with the need to reinvent from within in order to stay relevant to customers and employees.

At Mindtree, we are continuously addressing both challenges; we have a great pipeline of emerging leaders. We have consistently delivered world-beating projects that make larger competitors admire us, and at the same time, our own people believe that their organization is among the best places to work. With these successes to guide us, we have a reasonable view of what sort of future we want to create.

The future of your company is closely tied with the world economy. We are an export-dependent company. Our fortunes are tied to how the world fares and how the world feels. If you look at how the world fares, not a day goes by without some part of it reporting either caution or bad news. At Mindtree, we are making sure we choose our customers, geographies and verticals well so that we are able to buck any adverse trend in the global economy. In this context, our engagement with Bain Consulting to help us sharpen our strategy and structure is very timely and relevant. Going forward, you will see the impact of their recommendation on how we should organize ourselves to grow and sustain our top-line and the bottom-line.

While we are on the subject of growth, I have always maintained that that no organization is an island. We are part of the larger social fabric. If societies do not succeed, businesses will invariably fail. This realization has been integral to our thought process. That is why we have stayed engaged with the society beyond business; that is why our mission statement says that we help businesses and societies flourish. Our outreach has been consistently noticed and admired. We feel encouraged with the recognition, but it is neither legal bindings nor admiration that makes us do what we do. Being socially sensitive is integral to our DNA. Please pay attention to our Business Responsibility Report. At Mindtree, your investment serves a larger purpose even as we deliver value to our immediate stakeholders. In the years ahead, Mindtree will continue to engage with the communities we serve across the world.

Before I close, please join me in thanking R Srinivasan and Anjan Lahiri, as we say goodbye to them.

R Srinivasan is an independent director of your board and chairman of the Audit Committee who will retire after the forthcoming Annual General Meeting. He has steered us with his expertise and wisdom over the years. We wish him great strides in the years to come.

Anjan Lahiri, Executive Director, has been instrumental in making Mindtree what it is today. After almost a decade and a half of working closely with the idea and its execution, he has expressed his desire to move on. We thank him for his many contributions, and wish him the very best in his future projects.

Once again, thank you for your support in our endeavors, and I am looking forward to meeting you at the Annual General Meeting.

Welcome to possible

Sincerely,
Subroto Bagchi
Chairman