On Tuesday, the engineering major L&T sold its electrical and automation business to Schneider in an all-cash deal valued at Rs. 14,000 crore.
In a statement chief executive and managing director SN Subrahmanyan said, "The divestment of E&A business is in line with our stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and the management focus for creating long-term value for the stakeholders". He added that the partnership with the French giant is a win-win deal for the employees, shareholders and business partners.
In the financial year ended March 2017, the E&A business of L&T reported net revenue to the tune of Rs. 5,038 crore.
As part of the transaction which is subject to regulatory approvals all segments excluding marine switchgear and servowatch systems which form the part of the E&A business are covered.
L&T Group Chairman AM Naik said, "The 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 and its employees".
The company deals in an exclusive range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions.
The E&A business has manufacturing facilities are located at Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysore as well as in Saudi Arabia, UAE (Jebel Ali, Dubai), Kuwait, Malaysia, Indonesia, and Britain.
Schneider Electric SE with headquarters in Rueil-Malmaison, France is a multi-national corporation with specialization in the areas of energy management, software and services, automation solutions and spanning hardware.
With PTI Inputs