French group acquires L&T unit
The acquisition of Larsen & Toubro Electrical and Industry Automation division by Schneider Electric will spur growth in domestic manufacturing in line with the Make in India initiative, said Commerce and Industry Minister Suresh Prabhu.
This acquisition, combined with Schneider Electric’s digital know-how, will result in greater domestic production, increased exports, reduced imports and effectively provide a wide range of product offerings at competitive prices, he said during meeting with Jean Pascal Tricoire, Chairman and Chief Executive Office, Schneider Electric in New Delhi on 5 Sept 2018.
Schneider Electric, a global leader in Energy Management and Automation advanced Technologies, has entered into an agreement to acquire Larsen & Toubro Electrical and Industry Automation division.
Schneider Electric and Temasek, the investment fund owned by Singapore government, will invest together Rs.14,000 crores in the operation.
Prabhu stressed that it will be one of the largest ever investments in manufacturing sector by a French company, making India its third largest country of operation and at par with France.
The Minister expressed hope that the Schneider Electric India will make efforts to develop India as the fourth hub globally to cater to the growing Indian market as well as develop it as the manufacturing and R&D hub for export to other new and emerging markets, including Africa, the Middle East, and South-East Asia. The other three hubs are the United States of America, France and China.
The acquisition will also benefit the wider Indian economy by creating significant employment opportunities in India. It will also create significant personnel development and global employment opportunities for local talent with enhanced skills in Digital and loT technologies. fiinews.com
