Schneider Electric expects to complete the Rs 14,000 crore acquisition of Larsen & Toubro’s electrical and automation business by early 2020, its India head Anil Chaudhry said on Wednesday.
In May last year, Schneider Electric, a global player in energy management and automation, together with Singapore’s state investment firm Temasek Holdings had announced an all-cash buyout of L&T’s electrical and automation business.
“We expect the deal to close in the next few months... maybe end of the year or early next year,” said Chaudhry, zone president and managing director of Schneider Electric India Pvt Ltd. Schneider, he said, had a “very strong commitment” to India which it sees as the future growth engine of the world.
Also, the country’s vision to become a developed nation from a developing one now would need massive infrastructure building and Schneider Electric can “play a strong role,” he said.
The deal has already got approval from the anti-monopolistic body Competition Commission of India (CCI). The acquisition will catapult India to the number three country in Schneider group globally in terms of business from the current fifth or sixth position, he said.
“More importantly, with this India will be a very strong fourth engineering and manufacturing hub for the group. Today we have three hubs — one in France, one in China and one in the US. With this (deal) we will be setting up the fourth hub in India,” he added.
Chaudhry said Schneider Electric and L&T’s electrical business have a strong complementary role as it would widen the offering for customers.