L&T Technology Services has divested its public-sector-focused unit, Smart World and Communication (SWC). In an exchange filing, the company said it is selling its entire stake in the unit for Rs 452 crore.
L&T Technology Services said it is selling SWC to AMI Paradigm Solutions as part of its strategic pivot toward private-sector-focused Engineering Intelligence in manufacturing, industrial, and technology-led sectors.
Why did L&T Tech sell Smart World and Communication (SWC)
L&T Tech said in an exchange filing that the primary reason for the unit’s sale is to focus on the engineering intelligence sector. The company said it is doubling down on its focus across manufacturing, industrial, and technology-led Enterprise sectors and is pivoting to Engineering Intelligence as part of its next 5-year roadmap.
“Considering the evolving technological trends and accelerated pace of disruptions, LTTS is sharpening its focus and investments on six large technology bets, including EI, that will enable the Company to maintain its leadership position,” the company said.
L&T Tech and ParadigmIT management on stake divestment
Speaking on the stake divestment, Amit Chadha, CEO and Managing Director, L&T Technology Services, said in a statement that, “As we pursue long-term value creation for our stakeholders, we are reframing our strategic bets, with EI, Software, and Digital Manufacturing as key focus pillars in our select segments of Mobility, Sustainability, and Tech. We believe these will drive faster growth opportunities for LTTS.”
“Over the past two years, we have been investing in the operating layer for enterprises and public systems. With the coming together of ParadigmIT and the Smart World business, we would be building an AI-led platform focused on domain-specific models, sovereign AI architectures, and outcome-driven systems for governments and enterprises,” Sridhar Gadhi of buyer group ParadigmIT added.
Smart World and Communication business and revenue
L&T Technologies’ Smart World and Communication primarily focuses on public-sector infrastructure, including integrated command-and-control centers for cities, communication infrastructure, traffic management, and surveillance.
L&T Tech said that the revenue of the SWC unit for FY25 stood at Rs 1,027.95 crore, constituting 9.63 per cent of LTTS’s consolidated revenue in the fiscal year. The company added thatnet worth of the SWC unit for FY25 was Rs 445.89 crore, constituting 7.31 per cent of LTTS’s net worth in FY25.