Larsen & Toubro (L&T), India’s leading engineering, technology, construction and financial services conglomerate, announced the closure of the strategic divestment of its Electrical & Automation (L&T E&A) business to Schneider Electric, a global player in energy management and automation. The significant and complex divestment deal, announced in May 2018 has been completed after receiving the requisite regulatory approvals and fulfilment of necessary conditions. L&T’s exit from the Electrical & Automation business is a part of the strategic portfolio review process.
Mr A.M. Naik, Group Chairman, L&T said, “The closure of divestment of the E&A business is a key milestone in our stated long-term strategy. We believe Schneider Electric is the right partner to grow the business that L&T had nurtured and grown over the decades.” Mr S. N. Subrahmanyan, CEO & MD, L&T said, “This all-cash deal will help us create a much stronger balance sheet, thereby creating long-term value opportunities for our stakeholders by focusing on key aspects of the business.”
L&T’s E&A business with its wide range of low and medium voltage switchgear, electrical systems, industrial and building automation solutions, energy management systems, metering solutions and projects and services business are transferred to Schneider Electric. Schneider Electric will use related brand insignia for a specified period as the brand is very popular and has a strong brand recall in the switchgear market. About 5,000 employees of the E&A business will become part of Schneider Electric’s global family. The manufacturing facilities of E&A in India and related subsidiaries in other countries are also being transferred to Schneider Electric. L&T, over the past five years, in line with its strategy to focus on the EPC and Services business, has exited several businesses.
