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.
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.