NEW DELHI: Union Commerce and Industry Minister Suresh Prabhu said on Wednesday that the acquisition of Larsen & Toubro Electrical and Industry Automation division by Schneider Electric will spur growth in domestic manufacturing in line with the Make in India initiative of the Centre.
Speaking during a meeting with Schneider Electric Chairman and Chief Executive Office Jean Pascal Tricoire here, Mr Prabhu said this project, combined with Schneider Electric's digital know-how will result in greater domestic production, increased exports, reduced imports and effectively provide a wide range of product offerings at competitive prices.
Schneider Electric, a global leader in Energy Management and Automation advanced Technologies, has entered into an agreement to acquire Larsen & Toubro Electrical and Industry Automation division.
Schneider Electric and Temasek, the investment fund owned by Singapore government, will invest together in this operation a total amount of Rs 14,000 crore.
Mr Prabhu further stated that the project will be one of the largest ever investments in manufacturing sector by a French company in the country and will contribute to both Invest in India and Make in India initiatives.
With the project, India will become the third largest country of operation for Schneider Electric at par with France.
The Minister expressed hope that the Schneider electric India will make efforts to develop India as the fourth hub globally to cater to the growing Indian market as well as develop it as the manufacturing and R&D hub for export to other new and emerging markets, including Africa, the Middle East, and South-East Asia.
The other three hubs are the United States of America, France and China.
The project will also benefit the wider Indian economy by creating significant employment opportunities in India.
It will also create significant personnel development and global employment opportunities for local talent with enhanced skills in Digital and loT technologies, according to an official statement.