L&T has sold its electrical and automation unit to Schneider Electric for an all-cash deal of Rs.14,000 crore. The deal was announced in May 2018 and the company took almost two years to close the deal. The company is intending to utilize the proceeds to capital allocation decisions from a long-term perspective.

AM Naik, Group Chairman, Larsen & Toubro says, “The closure of divestment of the E&A business is a key milestone in our stated long-term strategy. The challenge was to carve out a business of this scale, with minimum disruption to the sprawling customer base and do it all amid the constraints of a pandemic." He continues, “We believe Schneider Electric is the right partner to grow the business, that L&T had nurtured and grown over decades. We truly believe that this deal with Schneider Electric is a win-win for our employees, business partners, and shareholders."

L&T's Electrical and automation business had witnessed a range of low and medium voltage switchgear, industrial and building automation solutions, electrical systems, energy management systems, metering solutions, and projects and services business that are now transferred to Schneider Electric. This company would use the related brand insignia for a particular period as the brand of the electrical has a high reputation in the switchgear market.

Jean-Pascal Tricoire, Chairman & CEO, Schneider Electric, sates “The coming together of Schneider Electric and L&T’s Electrical & Automation business combines two great teams, highly professional and specialized in the space of energy management and automation, and passionate about technology, innovation, quality, safety, sustainability, and social responsibility…This major strategic move will make India Schneider Electric’s third-largest business in the world, and one of the four major global Schneider hubs for global R&D, global manufacturing. We shall also keep growing our already significant export from our Indian factories."