Schneider Electric, in a press statement, has announced the successful completion of the transaction combining Larsen & Toubro’s Electrical & Automation business and Schneider Electric India’s Low Voltage and Industrial Automation Product business.
The combined business – Schneider Electric India Pvt Ltd (“SEIPL”), is owned 65 per cent by Schneider Electric. Global investment company Temasek owns the remaining stake. SEIPL
Anil Chaudhry – the current Zone President & Managing Director, of Schneider Electric India – has been named CEO SEIPL and Zone President India.
SEIPL will see the integration of over 5,000 employees from L&T’s Electrical & Automation business which includes its overseas markets of Middle East and Africa, Indonesia and Malaysia, with over 2,000 of Schneider Electric’s employees.
In an independent release, Larsen & Toubro said that the company’s E&A (electrical and automation) 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.
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 are also being transferred to Schneider Electric.
However, in view of the pending local approvals, the subsidiary in Saudi Arabia, L&T Electrical & Automation Saudi Arabia Company Ltd (LTEASA), will be transferred to Schneider, once the requisite regulatory approvals are in place.
Rationale for disinvestment
L&T, over the past five years, in line with its strategy to focus on the EPC and services business, has exited several businesses. The recent divestment of its stake in ports, insurance, road concessions and other businesses have all unlocked value and this deal with Schneider Electric will further strengthen the balance sheet, L&T said.
Featured photograph (source: larsenandtoubro.com) shows a range of low-voltage products of the E&A business of L&T.
