Schneider Electric—that acquired L&T Switchgear in 2020 for Rs 14,000 crore—rebranded the electrical automation company as Lauritz Knudsen, with plans to continue its 'Two Brands, Two Sales' strategy, where the two companies will compete for products and customers in the future as well.
"We made the commitment at the time of acquisition that we will continue with the strategy for the benefit of our customers and the brands," Peter Herweck, chief executive officer of Schneider Electric Global, told NDTV Profit in an exclusive interview.
The company believes that internal competition breeds competency and leads to development of innovative products, he said.
However, to address the issue of duplication, it plans to innovate products where the components have multiple usage and doesn't require to be manufactured twice.
"The product lines of Lauritz Knudsen (L&T Switchgear earlier) has a dedicated design, functionality and dedicated customers. They address customers that Schneider never addressed in the past," Herweck said.
In 2020, L&T Switchgear became a part of the Schneider Electric Group, following L&T's strategic divestment of its electrical and automation (L&T E&A) business. L&T Switchgear is now known as Lauritz Knudsen.
Investment In Products, Innovation
L&T Switchgear was India's largest producer of electrical automation products for the industries, green buildings, railways, rural and agricultural sector.
"Going ahead, we see growth in the rural markets, water irrigation and food market, with need for reliable electricity," Herweck said. "To achieve that, we will continue to listen, to partner and innovate. Innovation would mean an investment."
"In the next three years, we plan to invest Rs 850 crore in driving innovation and incremental manufacturing," he said.
According to Herweck, people must expect new offers and enhancements to come as the world is progressing, but the company has to address the same set of existing customers and will want the products to be cost-competitive.
Lauritz Knudsen has also expanded its export market from 10 to 30 since it got acquired, he said.
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