L&T to sell electrical and automation business to Schneider for Rs 140 bn

This is the biggest disvestment for the engineering giant so far

In its biggest divestment so far, engineering conglomerate Larsen & Toubro (L&T) on Tuesday said it would sell its electrical and automation business (E&A) to France-headquartered Schneider Electric for a cash consideration of Rs 140 billion. The divestment plan, which was first discussed in the summer of 2015, took three years to mature, it is learnt. 

The deal is important because it signals L&T’s exit from manufacturing in the real sense, a source said. Although it will continue with manufacturing in power equipment as well as industrial products and machinery, that will primarily be on the project business side with