Software major Wipro Ltd on Wednesday announced it was selling its EcoEnergy business division to Chubb Alba Control Systems Ltd, the Indian arm of the US-based United Technologies Corporation (UTC), for $70 million (Rs 480 crore).
"Since business carried out by the EcoEnergy division is not core and strategic to our IT business, it has been decided to divest it," said the city-based IT major in a regulatory filing to the BSE.
With Rs 67.6-crore revenue and Rs 15.6-crore net worth, the energy division accounted for 0.1% of the company's turnover in last financial year (2015-16).
The New Delhi-based Chubb Alba is an indirect subsidiary of UTC and provides products and services to the building systems and aerospace industries, worldwide.
"The sale is expected to be closed by 2017 subject to regulatory approvals and customary closing conditions," said the filing.
UTC has to also get approval of the Competition Commission of India (CCI).
UTC's Climate, Controls & Security provides energy management services, including heating, ventilating, air-conditioning and refrigeration systems for commercial customers in North America, Europe and Asia.
"We believe EcoEnergy's energy management platform and services will enable us to develop its remote monitoring and building analytics capabilities and bring enhanced services and solutions to our global customer base," said Ross Shuster, president, UTC Climate, Controls & Security, in a statement from New Delhi.
The UTC arm's leading brands, including Carrier, Riello, Chubb, Edwards, Onity, Automated Logic, Lenel, Interlogix and Kidde will offer EcoEnergy service options to its customers.
"The transaction will also help us to serve our customers and enable them to realise the opportunities made possible by IoT (Internet of Things) and big data analytics," said Mansoor Ahmad, Vice-President, EcoEnergy in the statement.