“This all-cash deal will help us create a much stronger balance sheet, thereby creating long-term value opportunities for our stakeholders by focusing on key aspects of business,” SN Subrahmanyan, CEO & MD, Larsen & Toubro, said. “The deal was a complex M&A transaction involving slump sale of the domestic business and share purchase transfer. This is in sync with our strategy to look at L&T in broadly three areas, EPC Construction & Projects, Manufacturing & Defence and Services.”

L&T’s E&A business had a range of low and medium voltage switchgear, electrical systems, industrial and building automation solutions, energy management systems, metering solutions and projects and services business that are now 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.

About 5,000 employees of the E&A business will become part of Schneider now. 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. In view of the pending local approvals, the subsidiary in Saudi Arabia, L&T Electrical & Automation Saudi Arabia Company Limited (LTEASA), will be transferred to Schneider, once the requisite regulatory approvals are in place.

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, the company said in a press release.

In a separate press release, Schneider Electric said it would combine L&T’s electrical and automation business with Schneider Electric India’s Low Voltage and Industrial Automation Product business. The combined business – Schneider Electric India Private Limited (SEIPL) will be owned 65% by Schneider Electric while global investment company Temasek owns the remaining stake. SEIPL also announced the appointment of Anil Chaudhry – the current Zone President & Managing Director, of Schneider Electric India – as the CEO SEIPL and Zone President India. SEIPL will go to market with its two distinct portfolio brands, L&T’s Electrical & Automation business and Schneider Electric, along with separate sales teams and partner networks.

Jean-Pascal Tricoire, Chairman & CEO, Schneider Electric, said: “The coming together of Schneider Electric and L&T’s Electrical & Automation business combines two great teams, highly professional and specialised 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.”

About Schneider Electric

Schneider Electric is leading the Digital Transformation of Energy Management and Automation in Homes, Buildings, Data Centers, Infrastructure and Industries. With global presence in over 100 countries, Schneider is the undisputable leader in Power Management – Medium Voltage, Low Voltage and Secure Power, and in Automation Systems. We provide integrated efficiency solutions, combining energy, automation and software. In our global Ecosystem, we collaborate with the largest Partner, Integrator and Developer Community on our Open Platform to deliver real-time control and operational efficiency. We believe that great people and partners make Schneider a great company and that our commitment to Innovation, Diversity and Sustainability ensures that Life Is On everywhere, for everyone and at every moment.

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