Larsen and Toubro Sell Electrical and Automation Business to Schneider Electric
Schneider Electric Merges its industrial automation business in India with Larsen & Toubro's electrical and automation business.
Schneider Electric is a global company that provides digital solutions for the energy and automotive industry. Schneider's productive output combines state-of-the-art real-time automation, world-leading energy technologies, advanced software, and services for homes, data centers, buildings, infrastructure, and industries. The company recently made the transaction by combining its Schneider Electric India's Low Voltage and Industrial Automation Product business with Larsen & Toubro's (L&Ts) Electrical & Automation business.
What is SEIPL?
The combined business of L&T and Schneider resulted in the creation of Schneider Electric India Private Limited ("SEIPL"). A proportion of 65% of this new business is owned by Schneider, with the remaining stake held by global investment company Temasek. Temasek brings Schneider knowledge concerning India and expert coaching to help guide the company's export development.
L&T is an Indian technology, manufacturing, engineering, construction, and financial services conglomerate. The company owns a range of electrical systems, switchgear, industrial and building automation solutions, energy management systems, more. Schneider has now taken over this business. Employees from L&T (numbering over 5000) will also be making their move over to SEIPL and integrate over 2000 of Schneider's employees.
A look at some of Schneider's automation efforts. Image courtesy of Schneider Electric.
"We believe Schneider Electric is the right partner to grow the business, that L&T had nurtured and grown over decades. We truly believe that this deal with Schneider Electric is a win-win for our employees, business partners, and shareholders", said AM Naik, Group Chairman of Larsen & Toubro, in a recent news release.
Boosting India's Economy
Schneider hopes that the new business will be invaluable in providing India's economic growth and support for the government vision (Atmanirbhar Bharat) of making the country a self-reliant nation. SEIPL will go to the market with its two different portfolio brands. These brands include L&T's Electrical & Automation business and Schneider Electric.
"This major strategic move will make India, Schneider Electric's third-largest business globally, and one of the four major global Schneider hubs for global R & D, global manufacturing. We shall also keep growing our already significant export from our Indian factories", said Chairman & CEO of Schneider Electric, Jean-Pascal Tricoire in a recent press release.
In addition to the strategic merger, SEIPL also announced the designation of Anil Chaudhry (current Zone President & Managing Director of Schneider Electric India) as the CEO SEIPL and Zone President India.
SEIPL will provide a panoply of low voltage and industrial automation products for India and serve as a technological hub for its economy and other new economies.