Larsen & Toubro sells UK unit
Larsen & Toubro (L&T) is divesting its UK unit Servowatch Systems to Rolls-Royce for a consideration of around Rs 89 crore.
L&T on Wednesday said through its wholly owned subsidiary, Larsen & Toubro International FZE, it has signed definitive agreements with Rolls-Royce’s power systems division for the strategic divestment of integrated marine automation solutions provider Servowatch Systems.
Servowatch is a supplier of advanced and innovative integrated ship control systems and it now provides marine automation platforms over the past eight years of L&T’s ownership.
The company, based in Heybridge, Essex, United Kingdom, has 44 employees in the UK and India.
“The divestment of Servowatch Systems is as per our stated goal of unlocking value within the existing business portfolio by divesting non-core units. L&T facilitated the business to develop an award-winning software platform for the latest generation of marine integrated platform management systems that are sold globally to many navies and commercial operators. We believe its partnership with Rolls-Royce and its product and solution brand MTU will pave the way for its further growth,” S.N. Subrahmanyan, CEO & MD, L&T, said.
In August this year, L&T had concluded the strategic divestment of its electrical and automation business to Schneider Electric, a global player in energy management and automation.
L&T said that it continuously evaluates its business portfolio and takes capital allocation decisions from a long-term perspective and that the exit from the electrical and automation business as well as Servowatch Systems is a part of the strategic portfolio review process.
Servowatch Systems posted revenues of Rs 50.42 crore for the year ended March 31, 2020, which constituted around 0.03 per cent of the consolidated revenue of L&T.