REASONS AND IMPACT OF ACQUISITION OF AREVA DISTRIBUTION BY SCHNEIDER ELECTRIC

Abstract

Schneider Electric is a large-scale French company with a global footprint as it spans operations in more than 100 countries. It is headquartered in Rueil-Malmaison, France. It was founded in 1836 by two brothers and incorporated in 1981. From 1836 till date, Schneider Electric, with the most diversified portfolio of activities in energy management has transformed itself into the global specialist and expert in energy management. Schneider Electric is present in Pakistan through its representative offices in Lahore, Karachi and Islamabad and its network of partners. Schneider electric started its manufacturing of switchgears in Pakistan with the acquisition of Areva Distribution in 2010. This research is carried out to shed light on the possible reasons behind this acquisition and its impact felt over the company and its employees. The research type is exploratory. The data for the research has been collected through two sources; primary and secondary. The Primary data is taken with the help of questionnaires filled by the management and other concerned personnel of Schneider Electric and some informal interviews have also been conducted for a better understanding. The source of secondary data has been internet, engineering magazines and material provided by the Company. After the research it has been surfaced that the acquisition of Areva Distribution has strengthened Schneider Electric’s position as a downstream expert in medium voltage thus making it a No. 1 Solution provider worldwide. It got presence in new economies with reinforced utilities presence and its smart grid capability increased making it a technological leader. With its presence people in Pakistan have got an opportunity to get access to electricity through alternative energy generation. Also a new segment “Energy” has been created resulting in profitability for the company as the demand is high in new economies. However, there are some product gaps and confusion regarding distributed products which should be rectified soon.