Bagchi returns to India amid talk of M & A

(February 27, 2004 – The Economic Times)

By Kalpana Shah

At MindTree a period of hectic and intense activity is just round the corner. Mr. Subroto Bagchi, currently chief operating officer (COO) and president, US operations, will relocate to India in charge of new functions. The US operations will be headed by Mr Scott Stales, a co-founder at MindTree who will be redesignated executive vice-president, US operations.

It is reliably learnt that Mr Bagchi will now look after the people function, global marketing facilities and administration, special projects, culture and competence (C2), and knowledge management.

Going by Mr Bagchi’s new role and by what Mr Soota had told ET in an earlier interview, it seems as if MindTree is now ready to locate to its own campus. However, ET could not get a specific confirmation. The campus will certainly be needed if headcount has to drastically go up. And it will go up if acquisitions happen in the near future. Such acquisitions are essential if MindTree has to reach its stated objective of $231 million revenues by 2008. (The revenues for fiscal 2002-03 were $18.2 million, and those expected in the current fiscal are $25-28 million).

Mr Soota had said in the previous interview that MindTree was looking at inorganic growth, which would comprise acquiring a few small companies or one mid-sized company. There’s no hint available about which company is being acquired, but Mr Bagchi’s return could only mean that he will be fully engaged in any integration process that will follow. In a culturally strong organisation such as Mind Tree integration could mean noting short of bonding.

When contacted, Mr Bagchi did not divulge any specific details, and instead chose to refer to the mantle that Mr Staples would be donning “In no other Indian IT company, a country head with full leadership responsibility has been seen before. It is a tribute to Mr Scott and it also underscores that a new management model has arrived.’’