The combination of Mindtree and NxT Digital Business is expected to help fast track the journey to Industry 4.0
A branch of Mindtree in Bengaluru, India. (Credit: Chinmayee Mishra/Wikimedia Commons)
Mindtree has agreed to acquire Larsen & Toubro’s (L&T) NxT Digital Business, a cloud-based internet of things (IoT) and artificial intelligence (AI) platform for Industry 4.0, for a sum of INR1.98bn ($27m).
The Indian digital transformation and technology services company said that the deal will boost its cloud-based IoT and AI capabilities for Industry 4.0.
L&T founded NxT Digital Business as a startup within the group. The cloud-based platform enables the Indian conglomerate in extensively applying IoT technology and digitalisation for its operations.
NxT Digital Business is said to help L&T’s global customers get disruptive business outcomes. For this, the platform leverages the latter’s deep industry domain expertise in industrial IoT, AI, geospatial and cybersecurity applications, machine learning and augmented and virtual reality, and other emerging technologies.
Mindtree said that its offerings along with that of NxT Digital Business’ will offer scale and market agility to cope up with customers’ growing demands for end-to-end digital transformation. As a result, the journey to Industry 4.0 is fast tracked, said the Indian IT company.
Mindtree CEO and managing director Debashis Chatterjee said: “Industrial and manufacturing companies are starting to adopt digital technologies across the value chain, but need a partner with expertise to strategically connect the dots and generate business value from their data.
“The acquisition will complement our significant strengths in reimagining consumer experience, positioning us as one of the leading partners for leveraging data and analytics to drive insights and deliver transformational services to our clients.”
Mindtree plans to tap into NxT Digital Business’ capabilities across various industry segments in integrating sensors and telemetry data with its leadership in advanced data analytics and insights. This will enable it to bring in digitisation across the manufacturing and engineering value chain for enhanced operational efficiencies and customer experience.
L&T CEO and managing director S. N. Subrahmanyan said: “There is a huge opportunity ahead as global manufacturers and industrial companies are increasingly adopting Industry 4.0 focused smart solutions, systems, and processes, but are struggling to leverage data and analytics to drive efficiency and competitive advantage.
“NxT Digital Business experience, talent, expertise and credentials, coupled with Mindtree’s global scale, technology leadership, and deep understanding of domain and delivery, are a powerful combination of focus and capabilities to meet clients’ requirements.”
The closing of the transaction is subject to customary conditions.