Larsen & Toubro divests infrastructure engineering arm to STUP Consultants
In a significant realignment of its business strategy, Larsen & Toubro (L&T) has announced the divestment of its 100% stake in its infrastructure engineering subsidiary. L&T Infrastructure Engineering Limited (LTIEL), known for providing standalone engineering consultancy services in India’s infrastructure sector, has been acquired by STUP Consultants Private Limited, part of the French conglomerate Assystem SA. This divestment is a clear indicator of L&T’s intention to streamline its focus towards its core businesses and assets, paving the way for enhanced growth and sectoral focus.
Strategic Refocus for L&T as It Exits Non-Core Consulting Engineering Practice
D K Sen, Advisor to the Chairman and Managing Director at L&T and Chairman of LTIEL, expressed his insights on the deal: “This is a step to exit the non-core standalone consulting engineering practice and focus energy and attention on our core businesses. It not only benefits L&T but also allows LTIEL and its employees greater avenues of growth.” This statement underscores the strategic nature of the divestment, aligning L&T’s resources with its primary business objectives.
L&T Sharpens Focus on Core Businesses with Sale of Engineering Consultancy Services. Photo courtesy of Batmaniacs/Wikimedia Commons.
Pending Transaction: LTIEL Stake Acquisition by STUP Consultants
The transaction, involving the handover of LTIEL, which reported revenues of Rs.92 crore in the financial year 2023, is subject to the completion of customary closing conditions. The deal is anticipated to be concluded before January 15th, 2024. With this development, L&T emphasizes its commitment to optimize its business portfolio and provide LTIEL—the former L&T-Ramboll Consulting Engineers Limited—with an opportunity for expansion and growth under new ownership.