Date:04/10/2007 URL: http://www.thehindubusinessline.com/2007/10/04/stories/2007100451510200.htm

Back Schneider opens plant in AP; aims for 35-40% exports

– G. Krishnaswamy

(From left) The Ambassador of France, Mr Jerome Bonnafont; the CFO, Schneider Electric India, Mr Roshanlal Kariholoo, and the President Schneider Electric, Mr Henri Lachmann, at the inauguration of the Schneider Electric Plant on Wednesday.

V. Rishi Kumar

Gagillapur (Andhra Pradesh), Oct. 3 Schneider Electric, the €15.6-billion major, has announced the commissioning of its ninth manufacturing unit at Gagillapur in Medak district near here and is poised to further ramp up exports and sales in the domestic market.

The company, which manufactures switchgears and other electrical equipment in the new manufacturing base here, expects to export about 35-40 per cent of the overall production for its global requirements.

The Chairman of Schneider Electric, Mr Henri Lachmann, said that India has emerged as a strategic base for Schneider Electric’s global operations and the company’s business in India is growing at a much faster pace than the electrical industry.

Speaking to presspersons after the plant inauguration by the State Chief Minister, Dr Y.S. Rajasekhara Reddy, Mr Lachmann said that the company’s operations have grown significantly over the years and Schneider now has nine manufacturing plants, two global customer care centres, R&D centres and software centres, together employing over 5,500 people.

As the domestic market grows and takes to electrical automation solutions, Schneider expects to tap these opportunities depending upon requirements.

Growth potential

Referring to the market potential, Mr Lachmann said that the company now has presence in over 190 countries but sees India, Russia, China and Brazil as countries with immense potential for growth where global manufacturing facilities have played a big role in expanding market presence. Significantly, there is accent on localisation of products for specific markets.

Commenting on the recent Chinese court judgment against the company for patent violation, Mr Lachmann said: “they would go in for appeal.”

The Chief Executive Officer of Schneider Electric in India, Mr Roshanlal Kariholoo, said that the new plant has been constructed with an investment of Rs 100 crore and employs 500 people. The company has business plan to ramp this up further with a total capacity to host about 1,000 people.

Following the acquisition of American Power Conversion (APC), Schneider is poised to hit the $1-billion mark in exports from India through five manufacturing plants of APC. Apart from this, the company is poised to register revenues of about Rs 2,000 crore in India.