The Japan-based Yaskawa Electric Corporation, which supplies AC drives and servo products solely to Larsen & Toubro's Electrical and Automation division, has set up a manufacturing unit in Bengaluru. The 55,000-sq ft facility will produce 40,000 units of its new generation drives a year. L&T has an exclusive sales and service agreement with Yaskawa Electric to promote and sell the product in India. L&T said the success of the strong association had resulted in the setting up of the Bengaluru unit for meeting the increasing demand for motion control products in India. This was a step towards staying closer to customers and reinforcing Yaskawa-L&T's long term commitment to serve the Indian market. The cost of an AC drive varies from Rs 3,000 to Rs 4 lakh, depending on application.