Ladder to the Cloud by Larsen & Toubro Engineers, Rs 1,300 crore
allowing clients to perform extensive general and artificial intelligence workloads Larsen & Toubro Engineers
In an all-cash deal of Rs 1,327 crore, Larsen & Toubro Engineers is purchasing a 21 percent
share in E2E Networks, a supplier of artificial intelligence (AI) cloud services.
L&T wants to buy a total of 4.17 million equity shares in a two-part transaction. Additionally,
It has forged a strategic alliance with the AI firm,
whereby it will combine its current data center management and solutions with E2E’s cloud and AI cloud platforms.
Its services for startups and businesses will be improved as a result.
Thanks to its partnership with AI powerhouse Nvidia, E2E was the first company in India to offer cloud-based graphics
processing units (GPUs) in 2018. Blue-chip customers include Zomato, CarDekho, 1mg, Junglee Games, and Purplle, according to NSE-listed E2E.
In a disclosure to the BSE, L&T said it will have the right to nominate up to two
Directors on the board of E2E after the acquisition.
The engineering major’s audacious move provides it an advantage in the booming AI market. The CEO of L&T’s data center and cloud division, Seema Ambastha, stated, “Working with E2E Networks enables us to provide our clients with seamless, scalable, and secure cloud experiences.” The AI/ML platform TIR and cloud GPUs like the Nvidia A100, H100, and H200 are two examples of E2E’s cutting-edge cloud computing products According to Tarun Dua, chairman and managing director of E2E, “the strategic partnership between E2E and L&T represents a significant milestone for the future adoption of domestically built hyperscale cloud platforms in India.” According to Hasit Joshipura, adviser to the chairman of L&T Group for cloud and data centers, the significance of data centers has grown as a data-driven economy has emerged, ET said. Half of the nation’s data centers are constructed by L&T.
It also owns two IT companies (LTIMindtree and L&T Technology Services) for managed services and runs data centers for various state governments. Running its own data centers was the one area where there was a gap, he stated.
The engineering major
The engineering major also saw data centers, marketplaces, and semiconductors as potential development drivers.
It first established a 2 MW data center in Panvel as a proof of concept. It currently generates 30 MW, of which 12 MW are operational in Sriperumbudur, which is close to Chennai.Joshipura noted that “this is the space we want to be in” and that “co-location was the flavor of the month when we started.” It proceeded to a vanilla cloud after that. Naturally, it has since completely shifted to the GPU cloud. The reasoning behind this is that we may be able to work together to provide our clients, who will be residing in our data centers, with more capabilities. The center plans to purchase 10,000 GPUs and provide compute time to researchers and entrepreneurs under the government’s Rs. 10,000 crore IndiaAI Mission GPU procurement, in which L&T and E2E are both possible bidders. In September, L&T’s Ambastha informed ET that the company satisfies all of the tender’s pre-qualification and technical qualification requirements. The same month, E2E’s Dua stated that the business was able to qualify directly due to the tender’s relaxations on revenue requirements.
