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Schneider Electric in partnership with Temasek has reached an agreement with Larsen & Toubro to combine its E&A business with Schneider Electric’s Low Voltage and Industrial Automation Products business in India
1. What is the deal/ transaction about?
Schneider Electric, partnering with Temasek, has reached an agreement with Larsen & Toubro (L&T) to buy and combine its Electrical and Automation business (L&T E&A) with Schneider Electric India’s Low voltage and Industrial Automation Product business (“Combined Business”) which will be jointly owned by Schneider and Temasek.
2. What does L&T E&A business do?
L&T E&A is a recognized player in the Low Voltage and Industrial Automation business in India led by an experienced management team. It offers low voltage switchgear, electrical systems & equipment, energy management, metering and industrial automation solutions. It benefits from an extensive ecosystem of partners covering more than 260 cities in India. It has an efficient local manufacturing footprint with 5 manufacturing locations in India along with robust local R&D capabilities. The company is also present in the Middle-East and South-East Asia markets. L&T E&A has over 5,000 employees, excluding Marine Switchgear and Servowatch Systems.
For more details, you can refer to the website of E&A http://www.larsentoubro.com/electrical-automation/
3. Are all the products/ businesses of E&A being combined?
E&A business except for Marine Switchgear in India and Servowatch subsidiary in the UK will be combined with Schneider Electric Low Voltage and Industrial Automation Products business in India. Marine Switchgear and Servowatch Systems will continue to be retained and operated by L&T.
4. Which businesses and functions of Schneider Electric are in the scope of the Combined Business?
Partner Projects, Eco Building, Retail FD/WD & Industry BUs of Schneider in India will be the part of the Combined Business.
Process Automation (PA), Energy, IT Division (ITD), Solar, Luminous are not part of the Combined Business.
5. Who is Temasek and what is their role?
6. What is the strategic rationale for Schneider Electric to acquire L&T E&A business?
This combination will create significant synergies and efficiencies by leveraging on the complementary businesses of Schneider and L&T E&A business, including:
7. What is the process now and expected timelines?
8. What key regulatory approvals are required for the transaction?
9. What is the integration strategy and timelines?
Post ‘Closing’, a detailed integration strategy will be devised keeping in mind best interests of customers, employees, partners & all other stakeholders of both companies.
10. What does this transaction mean to Schneider Electric customers?
The proposed transaction will help customers benefit from a combined portfolio of Schneider Electric and E&A business offers price points and segments. Customers in geographies where currently only Schneider or E&A operates will also have access to a large portfolio of combined entity as well as to advanced technology products/solutions offerings.
11. Will there be any impact on my ongoing orders? Will there be any changes made to terms agreed with E&A?
All commitments as based on the agreement will be honoured and the transaction will have no impact on any ongoing order.
12. Will there any change expected in my delivery schedule or execution timelines?
Customers of Schneider and L&T can be rest assured that there will be no impact in meeting commitments with respect to delivery schedules or timelines because of the proposed transaction.
13. What will happen to service obligations of E&A and Schneider?
Customers of both E&A business and Schneider will continue to receive after sales services based on the existing terms of contracts of respective organizations and post-closing, the merged entity will ensure all transferred contractual obligations.
14. Will there be any issues related to availability of products due to this transaction?
We do not anticipate any impact on availability of products of either company due to the proposed transaction
15. Will any significant changes be made to product portfolio of either company? Will any products be discontinued?
There are no immediate plans to make changes to the product portfolio of either company
16. Can I get blokset with L&T components? Can I get L&T panel with Schneider Components?
There are no immediate plans to make changes to the product portfolio of either company. However, in future, Post Closing, we would like to bring more options to our customers to serve their needs better. This will be informed well in advance to all customers
17. Can I start buying L&T products from Schneider Distributor or Vice versa?
18. My installation has both Schneider & L&T products. Who should I get in touch with for after sales services?
Until Closing, both the companies will continue to operate independently and render services for the respective products You can continue to contact the same teams of respective companies as you do today.
19. Who will be responsible for after sales services of ongoing orders?
20. What will be the impact on product warranties?
All commitments based on the agreement will be honoured and the proposed transaction will have no impact on existing warranties.
21. L&T E&A has training centers for imparting training to my engineers, will it continue?
Yes. There will be no changes.
22. If I have more questions on this who can I ask?
For any specific questions please direct them to the official email id firstname.lastname@example.org