Schneider Electric expects to complete the acquisition of Larsen & Toubro’s Electrical & Automation business soon. In an interview with Subhajit Roy, Anil Chaudhry, Zone President & Managing Director, Schneider Electric India explains that the combined business will create significant synergies and efficiencies by leveraging the complementary businesses of Schneider and L&T E&A business. Excerpts:
Mr Chaudhry, congratulations to you and your team on opening the second smart factory in India. Tell us more on the concept of ‘smart factory’ and how it will benefit your customers.
Schneider Electric has launched several smart factories around the globe in countries including Mexico, China, France, USA, Indonesia and the Philippines. Our smart factories in India demonstrate the company’s EcoStruxure architecture and related suite of offerings that drive process automation, increases operational efficiency and reduces costs in the industrial environment. With the presence of two smart factories in India, Schneider Electric further strengthens its contribution to the Industry 4.0 agenda in India by providing customers with a showcase of the benefits of industrial digital transformation, enhanced performance, increased reliability and safety, and remote monitoring and preventive maintenance.
The Bengaluru Smart Factory demonstrates how the digitisation of industrial environments using EcoStruxure can optimise the processes for both production and end to end supply chain operation and take energy efficiency to a whole new level.
Our Smart Factory Program has been recognised by the World Economic Forum’s network of manufacturing lighthouses, which aims to create a learning platform through the world’s best manufacturers who are embedding the technologies of the Fourth Industrial Revolution into modern production. Schneider Electric is committed to developing as many smart factories by 2020, globally, and the Bengaluru Smart Factory, which manufactures IT products and drives that are delivered to customers across the globe, is one of our key smart facilities in this region.
What’s the commitment of Schneider Electric India to the group?
We are the third largest country in terms of revenues for Schneider Electric, at par with France. Also, post integration of Larsen & Toubro’s Electrical & Automation (E&A) business, we are set to become one of the key innovations and manufacturing hub for India as well as for global markets.
Schneider Electric India is well-positioned to serve the fast-growing Indian energy management and industrial automation industry as well as the global markets.
Earlier you said that Schneider Electric is committed to “India for Globe”. What are your India-specific expansion plans?
Having two smart factories located in India in itself reinforces our commitment to the Indian government’s ‘Make in India’ program which is designed to facilitate investment, foster innovation, enhance skills development and build best-in-class manufacturing infrastructure in the country. India is one of the key markets for Schneider Electric where we have been witnessing robust growth.
We already have 23 manufacturing units across the country, making a wide range of energy efficient products. Half of our production in India is exported to global markets. Also, we heavily invested in R&D in India with a significant part of products developed especially for India under our India for India initiative.
How will acquisition of L&T’s E&A business consolidate your portfolio and reach?
With L&T’s E&A division, India will become one of the key innovations and manufacturing hubs for Schneider Electric, globally. Further, this merger will contribute to making India green, digital, and reinforce its role as a centre for R&D and manufacturing for Schneider Electric.
The combined business will create significant synergies and efficiencies by leveraging the complementary businesses of Schneider and L&T E&A business, including:
1. Wide range of products and technologically superior solutions to the Indian consumers across portfolios and price points.
2. Widespread network of distributors/channel partners and extensive geographical reach across India, enabling Schneider access to consumers in tier 2 and tier 3 cities and semi-urban and rural areas across India, where Schneider Electric currently has a limited presence.
3. Enhanced manufacturing footprint in India which will result in greater domestic production, reduced dependence on imports and increased employment opportunities.
4. Developing India as the “fourth” hub for Schneider globally (the other three being US, France and China) to cater to the growing Indian market as well as develop India as global markets.
