1. Mergers & Acquisitions Schneider Electric acquiring Luminous Power Technologies. Presented by: Arpit Gupta MohitMittal Mohit Kakar Neha Singh RituBhatnagar

3. Today, the company has grown into a world leader in active energy management.

4. Products include

5. Programmable logic controllers

6. Sensors and variable frequency drives

7. Uninterrupted power supplies

9. Schneider Electric S.A. has made 53 acquisitions while taking stakes in 11 companies and 12 divestitures during period 1982 – present.

10. Recent acquisitions in India include :

11. 2011 Acquisition of Luminous

14. Reliable

15. Efficient

16. Productive

17. GreenA unique positioning

20. Deep-cycle batteries.

21. Uninterrupted power supply (UPS).

22. Physical infrastructure solutions for IT & Telecom.

25. To gain access to a complementary retail market.

26. To broaden the product portfolio.

27. To balance its geographical exposure in India.

28. To strengthen its local research & development capabilities.

30. Why Schneider went on to acquire Luminous ? 2 Attractive Assets

31. Why Schneider went on to acquire Luminous ? 3 Leverage for Growth

32. Why Schneider went on to acquire Luminous ? 4 Distribution Channels

34. The remaining 26 per cent of the stake in Luminous Power Technologies remains with the three founders – Sunil Bhalla, RakeshMalhotra and Naveen Kapoor.

35. Put and call options are standing for remaining 26 %.

36. The transaction was valued at 16 times Luminous’ 2010-11 EBITDA.

38. Likely to raise its sales in the country to more than Rs. 4,500 crore.

39. Triple the revenue of 2009.

40. The acquisition is expected to be accretive on earnings per share from the first year.

41. This return on capital employed of the acquisition is expected to beat Schneider Electric’s WACC in year 4.

45. The Schneider gains.

46. Schneider Electric has become a very significant player in India.

48. However, M&A activity rebounded sharply:

49. ABB Ltd’sacquisitions of Baldor Electric (an industrial electric motor business) and Ventyx(an energy management software and smart grid technology company)