Larsen & Toubro (L&T) is in talks to sell its switchgear business. The company has kick-started the process to sell the business for approximately Rs 2,500 crore, CNBC-TV18 sources said.
L&T is likely to carve out switchgear’s assets from various subsidiaries to initiate the sale process.
The manufacturing and trading of switchgear stands at Rs 2,434 crore in FY16.
The company has already received interest from players like Mitsubishi, Panasonic, Hitachi and Honeywell for the business. Private equity businesses have also shown interest in acquiring switchgear assets.
The source also said that L&T has hired an investment bank to carry out the sale process.
L&T, however, refused to comment on the sale process saying it does not confirm or deny market speculation.
L&T had started selling off assets in its non-core businesses back in 2015 to improve the performance parameters.
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