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Torrent Power in Talks to Acquire L&T’s Thermal Power Business for $1 Billion

Torrent Power is in advanced discussions to acquire Larsen & Toubro’s (L&T) thermal power business for approximately $1 billion, including debt. The transaction, if successful, will help L&T streamline its operations and raise capital to reduce debt, as it pivots toward its core focus on engineering and construction. Both companies are currently working with advisers, but final terms are still under negotiation, and other bidders may emerge.

L&T has been considering the sale of its thermal assets for some time, including earlier talks in 2021 with Sembcorp’s Indian arm. The proposed acquisition would significantly strengthen Torrent Power’s position in India’s thermal power space. Torrent, part of the Ahmedabad-based Torrent Group, is already active across the energy value chain—spanning generation, transmission, distribution, and power cable manufacturing.

The potential deal underscores the ongoing consolidation in India’s power sector amid rising energy demand. Torrent Power, with a market capitalization of nearly $8 billion despite a 9% dip in its stock price this year, stands to gain valuable generation assets if the deal materializes.