Business

L&T Sells Electrical And Automation Business To Schneider Electric

L&T Sells Electrical And Automation Business To Schneider Electric

A total of about 5,000 employees of the E&A business will become part of Schneider Electric.

Larsen & Toubro (L&T) on Monday announced the completion of its electrical and automation (L&T E&A) business to Schneider Electric, a global player in energy management and automation. The deal was first announced in May 2018.

The divestment is in line with L&T's stated goal of unlocking value for future growth, L&T said in a regulatory filing. L&T continuously evaluates its business portfolio and takes capital allocation decisions from a long-term perspective, the company added.

Commenting on the closure of this divestment, Mr. A.M. Naik, Group Chairman, Larsen & Toubro 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 decades."

A total of about 5,000 employees of the L&T E&A business will become part of Schneider Electric's global family. The manufacturing facilities of E&A in Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysuru in India and related subsidiaries in UAE, Kuwait, Malaysia and Indonesia will also be transferred to Schneider Electric.

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Meanwhile, the Defence Ministry signed contract with L&T, besides Bharat Earth Movers and Tata Power Company, on Monday to supply six Pinaka regiments, a system of rocket launchers, to the Indian Army by 2024 at an approximate cost of Rs 2,580 crore.

At 11:00 am, the shares of L&T were trading huighwe by 1 per cent at Rs 954.90 on the BSE, compared to the Sensex's gains of 0.6 per cent.