Muscat: Larsen & Toubro (L&T), India’s leading engineering, technology and construction conglomerate on Tuesday signed, subject to regulatory approvals, definitive agreements with Schneider Electric, a global player in energy management and automation for strategic divestment of its Electrical and Automation (E&A) business for an all-cash consideration of Rs14,000 crore (Rs140 billion).
L&T’s E&A business offers a wide range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions. Its manufacturing facilities are located at Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysore in India as well as in Saudi Arabia, UAE (Jebel Ali, Dubai), Kuwait, Malaysia, Indonesia, and the UK. Over the years, the E&A business has built strong research and development capabilities and has a wide network of channel partners across India and international markets.
The E&A business reported net revenue of Rs5,038 crore (Rs50.30 billion) during FY2016-17.
Commenting on the occasion A.M. Naik, Group Chairman, Larsen & Toubro said: “L&T’s E&A business has had a strong presence for decades and is well-positioned to continue its growth trajectory with outstanding technologies, brands, people and global presence. We believe the partnership with Schneider Electric, which has a strong product and geographic presence, would further enhance the business prospects for E&A business & its employees.”
S.N. Subrahmanyan, CEO & MD, Larsen & Toubro said: “The divestment of E&A business is in line with L&T’s stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for 2 creating long-term value for our stakeholders. We believe the partnership with Schneider is win-win for our employees, business partners, and shareholders.”
The transaction includes all the current business segments of E&A except marine switchgear and Servowatch Systems.