We sold automation business because it's capital intensive, says L&T CEO

Electric and automation (E&A) business required a fair amount of capital spending and does not fit into the industrial culture of our company, said SN Subrahmanyan, Managing Director and Chief Executive Officer of Larsen & Toubro (L&T), to CNBC-TV18's Nisha Poddar.

L&T sold its E&A business to the France giant Schneider Electric for Rs 14,000 crore in an all-cash deal. The E&A business had net revenue of Rs 5,038 crore in the financial year to March 2017.

Subrahmanyan said, "L&T's E&A business is one of the oldest business of the company. It has been with us for the last five-six decades. It is well-known brand of L&T. It is one brand which is available across the length and breadth of India, to certain extent to far east and certain extent to Middle East too."