Comparison of Market shares of SEIPL and L&T with Top Competitors

India’s electrical and automation sector is gearing up for a big boost with a major acquisition in line with Schneider Electric India going to acquire the Electrical and Automation business of L & T India

Schneider Electric has entered into a definitive agreement with Larsen & Toubro, a leading Indian conglomerate, to buy its electrical & automation business for an all-cash consideration of Rs 14,000 crore.
Although, the analysts view it in the positive light, but the tables cold turn because of a number of factors exercising control over the market. The proposed acquisition might not prove to be a major hike in the market share in the LV industry. Reasons why such a situation can emerge are:

• Range of choices offered by the competitors
• Sophisticated and informed buyers
• No-lockin for distributors or buyers
• Ease of entry and expansion in the market
• Competitive constraints posed by the unorganised sector

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S.No.	Product/Solution	Market Share of Schneider%	Market Share of L&T(%)	Market Share of top 5 competitors(% )	Market Share of top 5 competitors(% )
1	Overload Relays	20-25%	35-40%	55-60%	Siemens (15-20%), C&S Electric (10-15%), ABB(5-10%), BCH Electric(0-5%), Eaton(0-5%)
2	Contractors	20-25%	25-30%	45-50%	Siemens (20-25%), C&S Electric (5-10%), ABB(10-15%), BCH Electric(0-5%), Eaton(0-5%)
3	MCCB	20-25%	25-30%	45-50%	Siemens (10-15%), C&S Electric (5-10%), ABB(10-15%),Others(15-20%)
4	ACB	20-25%	25-30%	45-50%	Siemens (15-20%), C&S Electric (5-10%), ABB(20-25%),Others(5-10%)
5	Servo	10-15%	0-5%	10-15%	Mitsubishi(10-15%), Siemens(5-10%), Delta(5-10%), Rockwell(5-10%), Others ( 45-50%)
6	PLC	5-10%	0-5%	5-10%	Mitsubishi(5-10%), Siemens(20-25%), Rockwell(15-20%),ABB(0-5%),General Electric(0-5%)
7	HMI	0-5%	0-5%	0-5%	Siemens(5-10%), Advantech(0-5%),Rockwell(0-5%), Mitsubishi(0-5%),Portwell Laxons (0-5%)

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Siemens(5-10%), Advantech(0-5%),Rockwell(0-5%), Mitsubishi(0-5%),Portwell Laxons (0-5%)

Though, post the proposed combination, the combined market share of SEIP for different products or solutions are as follows:

• ACBs and MCCBs goes up to 45-50%, the market for the same is characterised by the presence of at least 13 competitors i.e. Siemens,AA,C&S,Havells,Legrand, Mitsubishi,BCH Electric, HPL,Chint Electric, Hager, LSIS Industrial Systems Co. Ltd., Indo Asian and Eaton who will keep on maintaining an effective competition in the market.
• In the case of contractors and overload relays, the market is characterised by at least 12 competitors. Moreover, it is relevant to note that the market for all these products has witnessed many new players between 2008 and 2017.

If you look at the overlapping products/solutions ,you will notice that the combined entity would be the market leader in the 15 out of 29 overlapping products/solutions which includes MMR, DPR, PLC, HMI, RCD, DBs, PFC Components, COS, BBT, LV Drives, APFC Panels, Servo, AHF, WAS and Wires. Further, in the case of SDF the market share of SEIPL before the proposed acquisition was less than 5%.

Submitted November 22, 2018 at 03:19AM by erriravino https://ift.tt/2Qbpsop