The announcement could not come at a better time in the agenda of Narendra Modi. At the precise moment when the prime minister of India launches out to body lost in an electoral fight regional difficult for his party, the Bharatiya Janata Party (BJP) in the State of Karnataka, the French Schneider Electric has confirmed, on Tuesday 1st may, the rumor that ran for several days : the acquisition of the electrical activities of the leading indian CONSTRUCTION company, the group and Larsen & Toubro. Baptized Electrical & Automation (E&A), the entity has five production sites in India, including one in Mysore, the second largest city of Karnataka.
The transaction is encrypted to 140 billion rupees (€1.75 billion), will not fail to be analyzed as the illustration of the economic policy pursued for the past four years by the hindu nationalists in power in Delhi. “We are seeing a positive dynamic, with prospects of accelerated growth and rapid change in the energy sector “, explains to the World Luke Rémont, general manager of international operations, Schneider Electric. The period is ” favourable “, he adds, because there is ” a willingness of current leaders to create the conditions for a sustainable development of the country “.
The introduction of a single VAT in the twenty-nine States of the indian union, in July 2017, is, from this point of view, “the transformation is absolutely key” for companies operating in the sub-continent, said Mr Rémont. Added to this, the strategy of the ” Make in India “, Mr Modi was made the herald to encourage foreign investment to develop the local industry, “an opportunity” that Schneider ” had ” to enter.
A bond of the local revenue
The redemption of E&A marks an important milestone in the history of the group, who had set foot in India as early as 1963 : of a sudden, Schneider Electric will see its turnover…