L& T to sell E& A biz to Schneider
Larsen & Toubro ( L& T), India’s largest engineering and construction company on Tuesday said it has signed a definitive agreement with Schneider Electric for strategic divestment of its electrical and automation ( E& A) business for an all- cash consideration of ` 14,000 crore. The E& A vertical reported net revenue of ` 5,038 crore in FY17.
The transaction includes all the current business segments of E& A except marine switchgear and servowatch systems.
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. The transaction, which is in line with the company’s stated goal of unlocking value for future growth is expected to close in next 18 months subject to regulatory approvals.
“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 creating long- term value for our stakeholders. We believe the partnership with Schneider is win- win for our employees, business partners, and shareholders,” said S. N. Subrahmanyan, CEO & MD, L& T.
The France- headquartered Schneider Electric is a 180- year- old multinational corporation that specialises in energy management and automation business.
L& T’s E& A division has manufacturing facilities 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 company 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 creating long- term value for our stakeholders. — S. N. SUBRAHMANYAN, CEO & MD, L& T