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I

INTERNSHIP REPORT

An organizational study

At

LEGRAND INDIA Pvt. Ltd

Bangalore

Submitted in partial fulfillment of the requirement of the

Bangalore Company for the award of degree in

Master of Business Administration

Submitted by

GAUTAM.P.R

Reg. No. 12XQCMA050

Under the guidance of

Prof. SUMITHRA.SREENATH

M. P. Birla Institute of Management

Associate Bharatiya Vidya Bhavan

No. 43, Race course Road,

Bangalore 560001

August 2013

II

DECLARATION

I, GAUTAM.P.R (12XQCMA050) hereby declare that the internship report, an organizational

study conducted at LEGRAND INDIA Pvt. Ltd, Bangalore, submitted in partial fulfillment of

the requirements of the Bangalore Company for the award degree in Master of Business

Administration is a bonafide work carried out by me under the guidance of Prof.

SUMITHRA.SREENATH, MPBIM, Bangalore.

This report has not been submitted earlier to any other company or institution for the

award of any degree/ diploma.

The contents of this report are based on the data collected by me at LEGRAND INDIA

Pvt. Ltd, Bangalore under the guidance of Mr. PRAKASH HEGDE (Branch Manager).

Place: Bangalore GAUTAM.P.R

Date: 2 September 2013 Reg. No. 12XQCMA050

III

COLLEGE CERTIFICATE

IV

COMPANY CERTIFICATE

V

CERTIFICATE FROM GUIDE AND COLLEGE

Certified that this internship report entitled An organizational study conducted at

LEGRAND INDIA Pvt. Ltd, Bangalore submitted in partial fulfillment for the award of

MBA degree of Bangalore Company was carried out by GAUTAM.P.R, 12XQCMA050 under

the guidance of Prof SUMITHRA.SREENATH. To the best of my knowledge this has not been

submitted earlier to any other company or institution for the award of any degree/ diploma/

certificate.

Guide Principal

Name of the guide with initials

VI

ACKNOWLEDGEMENT

This project is a product of valuable insights, facts and experience I had with various people. The

experience was more than what was visualized.

Its my pleasure to express my deep sense of gratitude to Mr. PRAKASH HEGDE (Branch

Manager) for permitting me to undergo an in-plant training in their esteemed organization and

being my external guide. I thank him for his co-operation and valuable suggestions throughout

the period of internship.

I am also grateful to the entire staff and professionals of LEGRAND INDIA Pvt. Ltd for their

guidance and constructive co-operation in completion of this project.

I convey my heartfelt thanks to my parents and all my friends for their support, encouragement

and help without which this report could not have been successfully completed.

Date: 2 September 2013

Place: BANGALORE THANKING YOU

VII

CONTENTS

CHAPTER No TITLE PAGE No

1

INTRODUCTION 1 - 60

1.1 BACKGROUND OF THE STUDY 2 - 3

1.2 INDUSTRY PROFILE 3 - 20

1.3 COMPANY PROFILE 21 - 59

1.4 VISION, MISSION AND OBJECTIVES 59 - 60

2

ORGANIZATIONAL STRUCTURE 61 - 82

2.1 CORPORATE ORGANIZATION STRUCTURE 62 - 66

2.2 DEPARTMENTAL ORGANIZATION

STRUCTURE

67 - 70

2.3 AUTHORITY AND RESPONSIBILITY 71 - 82

3

FUNCTIONAL AREAS 83 - 105

3.1 HR DEPARTMENT 84 - 86

3.2 MAARKETING DEPARTMENT 86 - 99

3.3 PRODUCTION AND OPERATIONS

DEPARTMENT

99 - 102

3.4 FINANCE DEPARTMENT 103 - 105

VIII

4

SWOT ANALYSIS 106 122

4.1 STRENGTH AND WEAKNESS 107

4.2 OPPORTUNITIES AND THREATS 108

4.3 PROBLEM IDENTIFICATION AND SOLUTION

IN ANY SPECIFIC AREA

109 - 122

5

OBSERVATIONS, SUGGESTIONS AND

CONCLUSION

129 - 125

5.1 MAJOR FINDINGS 124

5.2 SUGGESTIONS 125

CONCLUSION 125

ANNEXURE 126 - 138

BALANCE SHEET 127 - 130

QUESTIONNAIRE 131 - 132

WEBILIOGRAPHY 133

IX

TABLES

Table

No

Table name Page No

1.3.1 Legrand share price in real time 48

1.3.2 Statistics at previous closing 49

1.3.3 World presence 51 - 53

1.3.4 Presence in India 54

4.3.5 Dealers dealing with Legrand

products

110

4.3.6 Time Period of selling Legrand

Products

111

4.3.7 Business Volume accounted from

Legrand Products

112

4.3.8 Prices of Legrand with compare to

the price of other brands

113

4.3.9 Satisfaction of Margins provided to

retailers by Legrand

114

4.3.10 satisfaction of the schemes offered to

retailers by Legrand

115

4.3.11 Reasons because of which end

consumers by the

Product

116

4.3.12 satisfaction of the Delivery service

of Legrand with comparison to other

brands

117

4.3.13 satisfaction of the Replacement

Procedure of Legrand

118

5.4.14 Balance sheet, Annual data 127 - 129

5.4.15 Balance sheet, Quarterly Data 129 - 130

X

GRAPHS

Graph

No

Graph Name Page No

1.3.1 Dividend per share in 49 4.3.2 Deals in Legrand 110

4.3.3 Duration of selling Legrand

Products by retailers

111

4.3.4 Volume of Business accounted

from Legrand

112

4.3.5 Prices for the Products of

Legrand

113

4.3.6 Margins Provided by Legrand 114

4.3.7 Schemes offered by Legrand 115

4.3.8 Reasons because of which end

consumers by the

Product

116

4.3.9 Delivery Service of Legrand 117

4.3.10 Satisfactory Replacement

Procedure?

118

XI

ABBREVIATIONS

AC Alternate Current

APDRP Accelerated Power Development and Reform Program

ATS Automatic Transfer Switch

BBC British Broadcasting

bn billion

CAC Circuit Administration Center

CD Credit Default

CENVAT Central Value Added Tax

CEO Chief Executive Officer

CFL Compact Fluorescent Lamp

CFO Chief Financial Officer

CLL Compagnie Legrand Limoges

Co Company

CPU Central Processing Unit

CPWD Central Public Works Department

CSR Corporate Social Responsibility

DB Distribution Boards

DJSI DOW Jones STOXX Sustainability Index

DRP Deutsches Reichspatent

DSP Digital Signal Processor

EE Electric Equipment

XII

emf Electromotive Force

ENA Ecole Nationale dAdministration

GE General Electric

IEEMA Indian Electrical & Electronics Manufacturers Association

ISO International Standardization Organization

KHz Kilo Hertz

KKR Kohlberg Kravis Roberts

KV - Kilo Volt

KWh Kilo Watt hour

L&T Larsen and Toubro

MAPICS Manufacturing Accounting Production Information Control System

MCB Miniature Circuit Breakers

MCCB Miniature Circuit Breakers

MCU Multipoint Control Unit

MES Military Engineering Services

MVA Mega Volt Ampere

MW Mega Watt

NEC National Electric Code

OTP One Time Programmable

PIR Pyroelectric(Passive) Infrared Sensor

PWD Public Works Department

R&D Research and Development

RAM Random Access Memory

XIII

RCBO Residual Current Breaker with Overcurrent Protection

RCD Residual Current Devices

RJ 45 Registered Jack 45

ROM Read Only Memory

T&D Transmission and Distribution

UK United Kingdom

UPS Uninterrupted Power Supply

VDI Voice Data Imaging

VSP Vertical Seismic Profile

Wi-Fi Wireless Fidelity

ORGANISATIONAL STUDY

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CHAPTER 1

I N T R O D U C T I O N


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1.1 BACKGROUND OF THE STUDY

Primary objective

The main objective of the study is to have a practical knowledge about the functioning of the

organisation.

Secondary Objective

To understand the organisation structure. To study various functional areas of the organisation. To understand how theory matches with practice. To understand the duties and responsibilities of various department heads. To identify the strengths, weakness, opportunities and threats of the organisation.

METHODOLOGY OF STUDY

The organisation study has been conducted by using qualitative form of analysis. But enough

attention is given for careful and complete observation of organisation and its functions.

Sources of data collection

The main sources of primary data are:

1. Discussions and interviews with managers and employees of Legrand India Pvt Ltd.

2. Observation method.

Secondary Data

The major source of secondary data includes company manual brochures circulars, annual report

and various other internal documents. In addition to this related Articles from journals, books,

magazines, internet were referred.


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PERIOD OF STUDY

This study has been conducted at Legrand India Pvt Ltd, during the period 1st August 2013 to 1st

September 2013

SCOPE OF STUDY

The study is confined to gain some knowledge about the culture and structure of the organization

and the functions of departments of Legrand India Pvt Ltd, Bangalore.

LIMITATIONS

The main constraints or limitations for the study were

Limited time available for the study. Authorities of all the departments had a busy schedule and hence there was

no scope for detailed interviews or interaction with them.

1.2 INDUSTRY PROFILE

Electrical equipment includes any machine powered by electricity. They usually consist of an

enclosure, a variety of electrical components, and often a power switch. Examples of these

include:

MAJOR APPLIANCES

A major appliance, or domestic appliance, is usually defined as a large machine which

accomplishes some routine housekeeping task, which includes purposes such as cooking, or food

preservation, whether in a household, institutional, commercial or industrial setting. An

appliance is differentiated from a plumbing fixture because it uses an energy input for its

operation other than water, generally using electricity or natural gas/propane. An object run by a


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watermill would also be considered an appliance. The term white goods or white ware is also

used for these items, primarily where British English is spoken, although definitions for the term

"white goods" can differ. In the United States, the term white goods more commonly refer to

linens rather than appliances.

Major appliances have become more technically complex from the control side recently with the

introduction of the various Energy Labeling rules across the world. This has meant that the

appliances have been forced to become more and more efficient leading to more accurate

controllers in order to meet the regulations.

Major appliances are differentiated from small appliances because they are large, difficult to

move, and generally fixed in place to some extent. They are often considered fixtures and part of

real estate and as such they are often supplied to tenants as part of otherwise unfurnished rental

properties. Another frequent characteristic of major appliances is that they may have substantial

electricity requirements that necessitate special electrical wiring to supply higher current and/or

voltage than standard electrical outlets can deliver. This limits where they can be placed in a

home.

MICROCONTROLLER

A microcontroller (sometimes abbreviated C, uC or MCU) is a small computer on a single

integrated circuit containing a processor core, memory, and programmable input/output

peripherals. Program memory in the form of NOR flash or OTP ROM is also often included on

chip, as well as a typically small amount of RAM. Microcontrollers are designed for embedded

applications, in contrast to the microprocessors used in personal computers or other general

purpose applications.

Microcontrollers are used in automatically controlled products and devices, such as automobile

engine control systems, implantable medical devices, remote controls, office machines,

appliances, power tools, toys and other embedded systems. By reducing the size and cost

compared to a design that uses a separate microprocessor, memory, and input/output devices,

microcontrollers make it economical to digitally control even more devices and processes. Mixed


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signal microcontrollers are common, integrating analog components needed to control non-

digital electronic systems.

Some microcontrollers may use four-bit words and operate at clock rate frequencies as low as 4

kHz, for low power consumption (single-digit mill watts or microwatts). They will generally

have the ability to retain functionality while waiting for an event such as a button press or other

interrupt; power consumption while sleeping (CPU clock and most peripherals off) may be just

Nano watts, making many of them well suited for long lasting battery applications. Other

microcontrollers may serve performance-critical roles, where they may need to act more like a

digital signal processor (DSP), with higher clock speeds and power consumption.

POWER TOOL

A power tool is a tool that is actuated by an additional power source and mechanism other than

the solely manual labor used with hand tools. The most common types of power tools use

electric motors. Internal combustion engines and compressed air are also commonly used. Other

power sources include steam engines, direct burning of fuels and propellants, or even natural

power sources like wind or moving water. Tools directly driven by animal power are not

generally considered power tools.

Power tools are used in industry, in construction, in the garden, for housework tasks such as

cooking, cleaning, and around the house for purposes of driving (fasteners), drilling, cutting,

shaping, sanding, grinding, routing, polishing, painting, heating and more.

Power tools are classified as either stationary or portable, where portable means hand-held.

Portable power tools have obvious advantages in mobility. Stationary power tools however often

have advantages in speed and accuracy, and some stationary power tools can produce objects

that cannot be made in any other way. Stationary power tools for metalworking are usually called

machine tools. The term machine tool is not usually applied to stationary power tools for

woodworking, although such usage is occasionally heard, and in some cases, such as drill presses

and bench grinders, exactly the same tool is used for both woodworking and metalworking.


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SMALL APPLIANCES

Small appliances, Small domestic appliances, or brown goods (from the color of the wooden and

Bakelite cases once used) are portable or semi-portable machines, generally used on table-tops,

counter-tops, or other platforms, to accomplish a household task. Examples of brown goods are:

television and wireless sets; microwave ovens; coffee makers; and personal computers. In

contrast, major appliances, or white goods (from their at one time common, white enameled

metal exteriors), cannot be easily moved and are generally placed on the floor. Major appliances

include the dishwasher, refrigerator, stove, washing machine, and dryer.

All appliances are intended to perform, enable, or assist in performing a job or changing a status,

such as the humidity of a room. In this way, they can be differentiated from other portable

electrical items that provide entertainment. Some items not typically considered appliances, such

as lamps, can be used as appliances if they are used to cook or warm food.

More specifically, often electrical equipment refers only to components part of the electrical

distribution system such as:

ELECTRIC POWER DISTRIBUTION

Electricity distribution is the final stage in the delivery of electricity to end users. A distribution

system's network carries electricity from the transmission system and delivers it to consumers.

Typically, the network would include medium-voltage (1kV to 72.5kV) power lines, substations

and pole-mounted transformers, low-voltage (less than 1 kV) distribution wiring and sometimes

meters.

ELECTRIC SWITCH BOARDS

An electric switchboard is a device that directs electricity from one source to another. It is an

assembly of panels, each of which contains switches that allow electricity to be redirected. The

U.S. National Electrical Code (NEC) defines a switchboard as a large single panel, frame, or

assembly of panels on which are mounted, on the face, back, or both, switches, overcurrent and


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other protective devices, buses, and usually instruments. The role of a switchboard is to divide

the main current provided to the switchboard into smaller currents for further distribution and to

provide switching, current protection and metering for these various currents. In general,

switchboards distribute power to transformers, panel boards, control equipment, and ultimately

to system loads.

The operator is protected from electrocution by safety switches and fuses. There can also be

controls for the supply of electricity to the switchboard, coming from a generator or bank of

electrical generators, especially frequency control of AC power and load sharing controls, plus

gauges showing frequency and perhaps a synchroscope. The amount of power going into a

switchboard must always equal to the power going out to the loads.

Inside the switchboard there is a bank of busbars, flat strips of copper or aluminum, to which the

switchgear is connected. These carry large currents through the switchboard, and are supported

by insulators. Bare busbars are common, but many types are now manufactured with an

insulating cover on the bars, leaving only connection points exposed.

Modern switchboards are metal enclosed and of "dead front" construction; no energized parts are

accessible when the covers and panels are closed. Formerly, open switchboards were made with

switches and other devices were mounted on panels made of slate, granite, or ebony asbestos

board. The metal enclosure of the switchboard is bonded to earth ground for protection of

personnel. Large switchboards may be free-standing floor-mounted enclosures with provision for

incoming connections at either the top or bottom of the enclosure. A switchboard may have

incoming bus bars or bus duct for the source connection, and also for large circuits fed from the

board. A switchboard may include a metering or control compartment separated from the power

distribution conductors.


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DISTRIBUTION BOARDS

A distribution board (or panel board) is a component of an electricity supply system which

divides an electrical power feed into subsidiary circuits, while providing a protective fuse or

circuit breaker for each circuit, in a common enclosure. Normally, a main switch, and in recent

boards, one or more Residual-current devices (RCD) or Residual Current Breakers with

Overcurrent protection (RCBO), will also be incorporated.

CIRCUIT BREAKERS AND DISCONNECTS

A circuit breaker is an automatically operated electrical switch designed to protect an electrical

circuit from damage caused by overload or short circuit. Its basic function is to detect a fault

condition and interrupt current flow. Unlike a fuse, which operates once and then must be

replaced, a circuit breaker can be reset (either manually or automatically) to resume normal

operation. Circuit breakers are made in varying sizes, from small devices that protect an

individual household appliance up to large switchgear designed to protect high-voltage circuits

feeding an entire city.


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ORIGIN

An early form of circuit breaker was described by Thomas Edison in an 1879 patent application,

although his commercial power distribution system used fuses. Its purpose was to protect

lighting circuit wiring from accidental short-circuits and overloads. A modern miniature circuit

breaker similar to the ones now in use was patented by Brown, Boveri&Cie in 1924. Hugo Stotz,

an engineer who had sold his company, to BBC, was credited as the inventor on DRP

(DeutschesReichspatent). Stotz's invention was the forerunner of the modern thermal-magnetic

breaker commonly used in household load centers to this day.

Interconnection of multiple generator sources into an electrical grid required development of

circuit breakers with increasing voltage ratings and increased ability to safely interrupt the

increasing short circuit currents produced by networks. Simple air-break manual switches

produced hazardous arcs when interrupting high currents; these gave way to oil-enclosed

contacts, and various forms using directed flow of pressurized air, or of pressurized oil, to cool

and interrupt the arc. By 1935, the specially constructed circuit breakers used at the Boulder

Dam project use eight series breaks and pressurized oil flow to interrupt faults of up to 2500

MVA, in three cycles of the AC power frequency.


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ELECTRIC METERS

An electricity meter or energy meter is a device that measures the amount of electric energy

consumed by a residence, business, or an electrically powered device.

Electricity meters are typically calibrated in billing units, the most common one being the

kilowatt hour [kWh]. A periodic reading of electric meters establishes billing cycles and energy

used during a cycle.

In settings when energy savings during certain periods are desired, meters may measure demand,

the maximum use of power in some interval. "Time of day" metering allows electric rates to be

changed during a day, to record usage during peak high-cost periods and off-peak, lower-cost,

periods. Also, in some areas meters have relays for demand response shedding of loads during

peak load periods.

TRANSFORMERS

A transformer is a static electrical device that transfers energy by inductive coupling between its

winding circuits. A varying current in the primary winding creates a varying magnetic flux in the

transformer's core and thus a varying magnetic flux through the secondary winding. This varying

magnetic flux induces a varying electromotive force (emf) or voltage in the secondary winding.

Transformers are thus used to vary the relative voltage of circuits, which, in some cases, also

isolates them.

Transformers range in size from thumbnail-sized used in microphones to units weighing

hundreds of tons interconnecting the power grid. A wide range of transformer designs are used in

electronic and electric power applications. Transformers are essential for the transmission,

distribution, and utilization of electrical energy.

The world electrical equipment sector has a market worth of $202 billion. The industry recorded

almost 4.5% growth in 2011, having witnessed 1% yearly growth for the four preceding years.

Power cable sales represented the leading market segment in 2011, generating revenue of almost


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$63 billion and accounting for more than 30% of the overall market in terms of value. Overall,

industry performance is expected to accelerate to almost a yearly rate of almost 5% between

2011 and 2016 to bring the market to just less than $255 billion.

Players in the global electrical equipment industry manufacture power, distribution transformers,

industrial controls, generators, electric motors, switchgear, switchboard tools, and relays.

KEY MARKET SEGMENTS

The global smart meter market is expected to generate revenue of $7 billion before the end of 2012. Meters using AMR technology represent almost 33% of North

Americas electricity, water and gas meters, and 3% of European meters. Smarter

metering is being increasingly acknowledged as the way forward for efficient energy

and utility usage. Countries such as Sweden and Italy are in the energy metering

market with more than 90% smart meter implementation in 2011. Compared with

countries such as the UK and Germany where smart meter implementation remains

under 5%, the sectors vast potential is obvious.

Heavy electrical equipment represented a $95 billion industry in 2010, after maintaining almost 6% yearly growth for the four preceding years. Wind turbines

represent the leading market segment, generating $40 billion in 2010 and accounting

for 42% of the overall market in terms of value. Industry performance is expected to

slow to a yearly rate of just less than 5% between 2010 and 2015. The global heavy

electrical equipment market has a predicted worth of $121 billion in 2015.

The global prepaid electric metering industry continues to enjoy strong growth, particularly with respect to the widespread penetration of smart meters worldwide.

With utilities set to introduce new prepaid programs and expand their current range of

prepaid services, software, hardware and service vendors are reacting quickly to snap

up market share. Customer and utility benefits of cost savings and energy efficiency

are fuelling the prepaid electric metering market. The increasing adoption of smart


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grid technology to support prepaid systems with smart prepaid meters deployment is

also helping drive industry growth. The worldwide installed base of prepaid electric

meters was estimated at more than 20 million in 2011, and is predicted to exceed 23

million in 2012. Yearly growth in excess of 9% for the seven-year period ending

2017 is expected to see the installed base climb to almost 34 million meters

worldwide in 2017. Demand for software and services to support prepaid systems are

expected to see the prepaid software market account for $210 million of the $263

million prepaid services market before the end of 2012.

The global flexible alternating current transmission sector is forecast to reach $1.7 billion by 2015, according to research from Global Industry Analysts. The Asia-

Pacific region dominates the market, followed by the EU, which is the worlds

second-fastest growing market for flexible AC transmission equipment fixed

compensation equipment.

REGIONAL MARKET SHARE

US electrical equipment sales have fallen since 2007 due to declining domestic demand and

imports encroaching on domestic market share. In part, moving production capacity from the US

to less-expensive regions has driven import penetration.

INDUSTRY LEADERS

Alstom

American Superconductor Corporation

General Electric

Siemens Power Transmission and Distribution


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Legrand

Schneider Electric

Mitsubishi Electric Power Products

Eaton

ABB

Havells

MARKET OUTLOOK

The demand for energy-efficient electrical equipment will climb over the coming years in

tandem with electricity demand. The rising cost of electricity coupled with aging electrical

infrastructure will also fuel demand. Companies investing in research and development and

working toward technological innovation will be able to offer the most energy-efficient electrical

equipment, helping them to stay ahead of competitors in the industry.

LEADING INDUSTRY ASSOCIATION

Electrical Equipment Representatives Association

National Electrical Manufacturers Association

Electrical Equipment Manufacturers Association of Canada

Indian Electrical and Electronics Manufacturers Association


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CHALLENGES

The following themes have been identified to enhance and sustain growth and improve

Competitiveness of the Indian electrical equipment industry:

Enhance EE industry competitivenessEnhancing competitiveness of the domestic industry is vital to achieving the Mission

Plan. The Indian EE industry should be so equipped that it is naturally able to thwart any

competition in the domestic as well as export markets. The following are the strategic

initiatives that are part of this theme:

Upgrade technology levels to bring it at par with global benchmarks Develop manpower skills to support industrys future requirements Secure supplies of critical input materials Enhance customer centricity Introduce policy changes to provide a level-playing field to Indian EE Manufacturers Develop and strengthen support infrastructure Increase market share in export markets

India currently accounts for less than 1% of global trade in EE exports. With the demand from

developed countries stagnating and that from developing nations seeing significant increase,

there exists significant potential for India to tap the export markets. To increase the share of

exports, specific actions need to be taken by the Indian government and EE manufacturers. The

following are the strategic initiatives that are part of this theme:

Identify target markets and develop country-specific export strategies Introduce policy changes to support EE exporters Use the support of Indian embassies and IEEMA to promote EE exports and Brand India Convert latent demand for EE products into real demand Significant latent demand for

EE products exists in India, but the same is not getting converted into real demand.

Specific initiatives are suggested, which needs to be Undertaken to create demand in a

wholesome manner, which would play an important Role in the development of the

industry. The following are the strategic initiatives that are part of this theme

Improve fund availability to power sector


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Provide fuel linkages and faster regulatory clearance for timely power projects Set ups Accelerate Renovation & Modernization activities Accelerate deployment of rural electrification schemes Implement best-in-class procurement policies

Over the next few months, specific recommendations need to be developed for each strategic

initiative that has been identified across the three themes. Working groups need to be formed and

these will need to drive each strategic initiative. Indian EE industry is on a critical path of

growth. It is imperative that the all stakeholders work towards development of this industry,

which serves the strategic power sector. Right policy initiatives and actions by all stakeholders

will give the industry the momentum to achieve the desired vision.

The electrical equipment industry faces several challenges which require concerted action by all

the stakeholders and policy interventions of the central and state governments. It is estimated that

the size of the domestic market for T&D equipment will grow to $7075 billion. Therefore, all

stakeholders, government, manufacturers, policy makers, and think tanks need to proactively

collaborate and take concerted and coordinated action so that the industry can further accelerate

its growth process and contribute significantly to reducing the power demand-supply gap in the

country.

High inflation, high interest costs, credit squeeze etc. is having a significant adverse effect on the

bottom line of the industry;

Prices of key inputs / raw material, especially which are imported in large quantities, are on an

upward trend.

Stiff competition in the domestic market from foreign suppliers and also in global markets is

eroding the price competitiveness of Indian manufacturers.

Chinese and Korean firms are competing with their Indian counterparts in the electrical and

equipment sector, which is facing a slowdown in domestic capital expenditure


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CURRENT SCENERIO

The current scenario in the electrical equipment sector is a potential portent for huge growth as

the demand for technologically better solutions in this sector is growing. Even during the

ongoing global slowdown, the overall performance of the industry has so far been good. The

industry is investing heavily in upgrading technologies and making improvements in quality

systems to cater to the emerging demand.

There have been some initiatives by the government that have helped the industry to grow. Some

of them are listed below:

No roll back on the Central Excise Duties, which was reduced earlier to combat economic recession, which will be surely very encouraging.

A lot of investment is being made through APDRP (Accelerated Power Development & Reform Program).

Sanctioning of pending power projects. Increase in the budget expenditure levels by about 36 percent, which will provide a boost

to consumption.

The Ministry of Power has taken a number of legislative and policy initiatives to expedite power

sector development. These initiatives provide loads of investment opportunities to FIIs and other

investors. The power sector reforms, if implemented as scheduled, will create large business

prospects for the power sector equipment manufacturers and service providers. We can expect

continued growth for this sector for at least another five to ten years.

Yet another important contributor to the current growth trend of the electrical equipment industry

is the spurt in real estate development. It is not only the major metros that have witnessed large

scale real estate development, but also the tier-1 and tier-2 cities that fast emerge as centers of

business and industry in the country. Further, the lowering of home loan interest rates by banks

has fuelled the demand for real estate. Nowadays, real estate developers and contractors demand

world class lighting and other electrical products as they intend to offer complete and ready-to-

move-in homes to their buyers.


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On an optimistic note, the generation of total electricity is going to increase, which in turn will

lead to more consumption and overall growth of the electrical equipment manufacturers. The

large nuclear power projects now nearing completion in different parts of the country will start

producing power in the next one or two years and, initially, about 4,000 MW of power will start

flowing into the national grid. Energy and Infrastructure have a key role to play in building an

economy. The development in the construction and infrastructure leads to higher demand and

growth for the electrical industry since they form the essence of any development.

Also, with the awareness level of the consumers going up, the market share of organized market

is expected to expand both horizontally and vertically. Product innovations will also help to

boost demand, although pricing competition in the industry will remain intense.

WORLD SCENARIO

Electrical Hardware includes an extensive range of electrical hardware products, components and

accessories that are used for the distribution, supply and usage of electricity. It includes

everything from electrical cable, wire and meters to lighting fixtures, bulbs and fans.

Electrical Hardware Products

Some of the important electrical hardware products types are listed below:

Electrical cable, Electrical socket, Electrical Wire, Electric Cord, Switch Gears,

EarthingAccessories,Cable&WireFittings,ElectricalPlug,Adapters,Busbars,ElectricMeters,

Lighting Fixtures, Electrical box, Light bulbs, Electric Fans.

World electric transmission and distribution equipment demand will raise 4.4percent annually

through 2011.The industrial and commercial sector will see the strongest gains as cogeneration

proliferates and products such as high voltage transformers become more common outside of the

utility sector.

Electrical Hardware Products Applications

Electrical hardware products have found uses in a variety of industrial applications, including


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Electric power distribution and supply Vehicle systems Production and manufacturing Communication systems Large scale transportation and equipment

Electrical Hardware Industry

The electrical industry provides an important service to modern life. It provides people with the

most prevailing form of energy known to mankind-electricity. Electrical industry supports the

economic-growth and productivity, promotes business development and expansion and generates

vast employment opportunities for people across the world. The industry includes establishments

primarily engaged in the manufacturing, supply trade and retaining of electric hardware products.

Electrical Industry

The electrical industry uses a number of applications of petrochemicals to help the industry

perform better and improve manufacturing processes. These petrochemical products are very

essential for the manufacturing of several of the electrical equipments as it helps in insulation,

prevention of loss of energy and safety.

Electrical Industry Trends

Increasing construction activity driving the demand for electrical hardware products

According to the recent market studies, the office construction in 2007 had an advanced

growth and this trend will continue till 2010.In the long run growth in the office

construction market is expected between 6% and 7% annually till 2011 and it will reach

$75.1billion by then.


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This forecast could prove to be profitable for electrical fittings and cable industry

worldwide. The demand for automation solutions will only continue to grow as industry

continues to seek the most flexible and efficient power and control devices to increase

system.

Increased employmentIn recent times, employment in the electrical hardware industry has gone up globally.

INDIAN SCENARIO

The Indian Electrical industry is now finding a good response for its products in the international

markets. What has brought this about? The industry has invested in upgrading technology and

improvements in quality systems so that it is able to offer products/systems contemporaneous to

what the developed countries make at much lower price.

Electricity has become an inseparable part of our daily life. In homes, offices, industries and

hospitals they are myriad systems, equipment and sophisticated appliances that depend on

electrical energy.

Electrical equipment such as motors, transformers, switchgears etc. is used by all sectors of the

Indian economy. Some major areas where these are used are the multi-crore projects for power

generation including nuclear power stations, petrochemical complexes, chemical plants,

integrated steel plants, non-ferrous metal units etc.

INDIAN ELECTRICAL INDUSTRY

a. Prospects of the Indian Electric Industry

Like every other industrial sector in India, the Indian Electrical Industry too is slowly

emerging from out of its protective cover. Since the last decade, India has witnessed

what global players have achieved and what they are capable of achieving. We are

becoming aware of competition on our turf. Many organisations in this industry are

looking overseas to develop the export markets owing to reduced demand at home.


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b. Future Prospects

The domestic market in India is itself large, and one must firstly satisfy this market with

products that meet international quality standards. With increasing globalisation, every

international player is now operating in India, providing goods and services complying

with international quality. The Electrical Industry in India is growing to its full potential

in the coming years and no doubt India will soon come to be recognised for quality

products and services which in turn, will bring this industry to a position of true

leadership.

FACTORS GOVERNING THE GROWTH OF THIS INDUSTRY

Research and development played an important role to the increased productivity and higher-value added electrical products.

Foreign investments accelerated growth in production and export as well.

Global industries like medical, telecommunication, etc. have been cordially supported by electrical industry.

Increase in income changed living standards of the common mass. As a result, it increased the demand of electronics.

Asia pacific region is emerging as the most spinning place for the consumer electronics industry.


21MPBIM

1.3 COMPANY PROFILE

Legrand is a French industrial group historically based in Limoges in the Limousin region. In

terms of sales, the firm is a world leader in products and systems for electrical installations and

information networks.

In 2011, Legrand was the largest globally for switches and sockets, with 20% of the global

market, and it was also globally largest in cable management (15% of the global market),

generating 75% of its turnover internationally. The company is market leader in at least one of its

main areas of business in 27 countries. It ranks second in India for sales of switches and sockets,

and ranks first for miniature circuit breakers (MCBs) and distribution boards (DBs).

The Group is also expanding its product range with regards to sustainable development and

energy saving technologies, and also has developed new products for photovoltaic installations

and lighting control.

History

The company's origins date back to 1860, when a Limoges porcelain workshop was set up on the

route de Lyon in Limoges (in France's Limousin region), originally making porcelain dishes.

1865 The origins

The origins of Legrand go back to 1865, when a porcelain tableware workshop was set up wood

merchants Henri Barjaud de Lafond and Lonard Clidasson along Route de Lyon (now called

Avenue du Marchal de Lattre de Tassigny) in Limoges, where the Group's head office is still

located today.

The factory was built on the banks of the Vienne River so that wood could easily be brought to

fuel the kilns in which the porcelain was fired.

It was operated in turn by Ernest Duchatelet (1865), Mr. Lobon (1871), Paul Lacroix (1876) and

Henri Barjaud de Lafond (1877).


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Porcelain workshop - porcelain kiln

Tumbler switch with porcelain housing

In 1966, Legrand acquired its first subsidiary outside France, in Belgium. This date marks the

beginning of its policy of self-financed, carefully targeted acquisitions. Find out more about

Legrand's acquisition policy.

STOCK MARKET FLOTATION AND SCHNEIDER/LEGRAND EPISODE

In 1970, on the strength of its economic performance, Legrand was listed on the Paris Stock

Exchange.

In January 2001, Schneider Electric launched a friendly securities exchange takeover bid aimed

at controlling all of Legrands capital. But the European Commission eventually opposed the

merger on competition grounds.


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In 2002, the ensuing demerger process was completed in December 2002. After an agreement

with Schneider Electric was reached, 98% of the Legrand Group's capital was acquired by a

Consortium consisting mainly of WendelInvestissement and KKR.

In 2003, following the above operation, Legrand shares are withdrawn from the Paris stock

exchange in October 2003.

LEGRAND LOOKS TO THE FUTURE

From 2006 to 2013

Legrand returns to the stock market, listed on Euronext. In 2011, Legrand becomes part of the

CAC 40.

For more than 60 years, Legrand has been supplying integrated solutions for lighting, heating,

energy, and network and access management in buildings. The Group's business is to design,

develop, and market electrical and digital systems that are both simple and innovative. Systems

for better communication, tighter security, and improved comfort and convenience in buildings

Since then, Legrand has made 120 targeted acquisitions all around the world, thus becoming a

large, diversified maker of electrical wiring devices with more than 150,000 product items. As of

2006, it has bases in 70 countries and sales in 180 countries.

SIGNIFICANT EVENTS

1966 First subsidiary outside France: in Belgium.

1970 Legrand is listed on the Paris Bourse (Stock Exchange).

1977 First site outside Europe: in Brazil.

1984 Pass and Seymour, first subsidiary in North America.

1989 Acquisition of BTicino, the No. 1 in Italy. Sales outside France account for 57% of the

Group's total sales.


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1992: Acquisition of Baco (France) and Tenby (United Kingdom).

1995 RTGamma (Italy) joins the Group.

1996 Acquisition of The Watt Stopper (United States), FAEL (Poland), Luminex (Colombia)

and MDS (India) - Launch of LEXIC, a range of protection products for the European

market.

1997 Acquisition of the Emergency Lighting and Alarm Systems Division of Saft (France,

Spain, Australia).

1998 Acquisition of Ortronics (United States), specialist in prewiring for data, telephone and

video networks.

1999 Ceb (Italy) and Anam (South Koread) join the Group. European launches new ranges of

wiring accessories conforming to German standards in Spain, Turkey, Greece, Portugal,

Hungary and Austria.

2000 Acquisition of Quintela and Tegui (Spain), TheWiremold Company and Horton Controls

(United States), and Lorenzetti (Brazil).

2001 Launch of a friendly public offer of exchange by Schneider Electric for the entire share

capital of Legrand. In October 2001, opposition of the Commission in Brussels was the

planned merger.

2002 The demerger process is completed. Legrand is acquired by a consortium whose main

members are WendelInvestissement and KKR

2004 Acquisition of Van Geel (Netherlands).

2005 Acquisition of the Zucchini Group (Italy), acquisition of OnQ (United States), and ICM

Group (France). Acquisition of TCL International Electrical and TCL Building

Technology divisions (China).

2006 Legrand returns to the stock exchange with listing on Euronext. Acquisition of Shidean

(China), acquisition of Cemar (Brazil), RMKabelbaner (Denmark) and Vantage (United

States)


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2007 Acquisition of HPM (Australia), UStec (United States), Kontaktor (Russia), Macse

(Mexico), TCL Wuxi (China) and AlpesTechnologie (France).

2008 Acquisition of PW Industries (United States), Estap (Turkey), HDL (Brazil) and Electrak

(United Kingdom).

2010 Acquisition of Inform (Turkey), IndoAsian Switchgear (India), Metasystem Energy

(Italy).

2011 Legrand enters the CAC 40 stock market index. Acquisition of Electrorack (United

States), Intervox (France), SMS (Brazil), Middle Atlantic Products Inc. (United States),

Megapower (Malaysia) and Numeric UPS (India).

2012 Acquisition of Aegide (Netherlands), Daneva (Brazil) and NuVo Technologies (United

States).

Tomorrow Legrand intends to accelerate its new product launches. Continue seizing

opportunities for external growth.

Stock market:

1970 to 1990 Legrand goes public

1970 Legrand is introduced onto the Paris Stock Exchange

1987 Legrand was part of the CAC 40 from the start on December 31st, 1987

2001 Schneider Electric launches a friendly securities exchange takeover bid aimed at

controlling all of Legrands capital. But the European Commission eventually opposes

the merger on competition grounds. As the share exchange process has taken place,

Schneider is forced to divest itself of the entire share capital of Legrand.

2002 / 2003 Completion of the demerger process: after an agreement with Schneider Electric

is reached, the capital of the Legrand Group is acquired by a Consortium


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consisting mainly of investment funds WendelInvestissement and KKR, and

Legrand is delisted.

Back to the stock market

2006 Legrand returns to the stock market and is listed on Euronext Paris in April. Kohlberg

Kravis Roberts (KKR) and WendelInvestissement remain majority shareholders with a

30% share each, with 19% free float, 16% held by minority shareholders and 5% by

management and staff.

At the end of 2006

Minority shareholders (banks and funds) sell their shares via an accelerated private institutional

placement, thereby taking traded shares to 35% of the capital and increasing stock liquidity.

2011 Part of the CAC 40 index KKR and WendelInvestissement strongly reduce their

shareholdings in Legrand, which are brought down to 6% each.

Gilles Schnepp, Chairman and CEO, rings the ceremonial bell that signals the opening of trading

at the stock exchange.

In December 2011, the combined effect of its share price trend, an increase in free float and the

rising volume of traded shares leads to Legrand's inclusion in the CAC 40 index.

Gilles Schnepp commenting on the return to the CAC 40 index

"Legrands return to the CAC 40 is good news, not only for the 32,000 Legrand employees, who

are proud of this accomplishment, but also for the company, whose profile will be raised, and of

course for the shareholders."


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LOGOS OF LEGRAND

The porcelain tableware logo

This logo was used between 1870 and 1949 on porcelain tableware. It shows a star encompassed

by two half-moons, bearing the inscriptions 'Limoges' and 'France'.

On the back of plates, this logo was often combined with the name 'F. Legrand&Cie Limoges

France'.

The electrical devices logo


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Made up of the letters CLL, for 'CompagnieLegrand Limoges', this logo was used from 1925

until 1967. During this period, it was to be found on packaging, catalogues and the faade of the

head office building.

Logo displayed on the Legrand factory building in 1955

Logo on the catalogue front page in 1934

1955

From 1955 on, the "CLL" logo is used in combination with a cartoon of an electrical installer in

action, whose cap bears the logo. This figure ceased to be used in 1968.

Installateur figuring on the front cover of the 1963 catalogue


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Light-switch type logo

Before the creation of the version we are currently familiar with, the logo was redesigned

through reassembly of the two capital 'L's in the "CLL" logo, placed facing each other head-to-

foot in combination with two lines to represent a switch with its incoming and outgoing wires.

The name "Legrand" was placed in small lettering to the right of this visual.

This logo was used for 6 years between 1968 and 1973.

This logo in black was also frequently combined with the name "Legrand" written in larger-scale

lettering, and in several colors.

Logo in the 1971 catalogue

Logo in an addendum to the 1972 catalogue


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The current logo

Still in use today, this logo was first used in 1974 in certain applications. It comprises the two

black 'L's facing each other head-to-foot in combination with two lines to represent a switch with

its incoming and outgoing wires, as well as a red "Legrand" of the same size as the square that

suggests a switch.

Extended to all-purpose use as of 1976, this logo is a registered trademark to protect against

counterfeit and copy.

NATURE OF BUSINESS

Legrand is a global specialist in electrical and digital building infrastructure, with Euro 3.9

billion turnover, headquartered at Limoges, France. The Group designs and manufactures over

98 product families comprising of 1, 78,000 products.

The group offers complete solutions for all buildings, which includes more than 100 ranges of

wiring devices, management of electrical installations and smart buildings, distribution and

power products up to 4000 A, structured cabling products, cable management and safety and

security products for residential and commercial buildings

Legrand is the global specialist in electrical and digital building infrastructures. Be it residential,

commercial or industrial building, we propose a complete solution for every project. Their

geographical reach, access across market segments and their ability to cater to new requirements

of the customer with smart solutions makes us a multipolar group.


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A COMPREHENSIVE OFFER FOR COMMERCIAL, INDUSTRIAL AND RESIDENTIAL

MARKETS

With products and solutions tailored to commercial, industrial and residential markets, Legrand

is a worldwide benchmark. From control and command devices to cable management, power

distribution and voice-data-image (VDI) systems, Legrand provides many solutions designed to

manage lighting, heating, energy, networks and building access. The Legrand catalog features

nearly 200,000 products in some 78 product familiesa wide choice by any measure.

An insight into the breadth and depth of Legrand solutions. Today, Legrand has over 1, 78,000

products that help meet the diverse needs of professionals and end users alike across 180

countries. From the simplest to the most sophisticated products, its repertoire comprises an

extensive range from energy distribution, wiring devices, safety and security to multimedia

networks. Thus its in a position to offer end-to-end solutions across residential, commercial and

industrial buildings. Its wide services from technical dossier to product standard regulations help

customers choose and specify the right solutions.


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Energy Distribution

Legrand is a market leader with its comprehensive range of products and systems for distributing

energy and protecting people and property. Products include Cabinets, enclosures, and circuit-

breakers.

Control and Command

Legrand provides all interfaces between the user and their installation for communication, safety

and comfort. These products include switches and sockets, communication and security

management, and installation control.

Voice, Data & Image Distribution

These solutions enable the circulation of voice, data and image across the entire premises.

Products include RJ 45 sockets, Wi-Fi access points, cabinets and cable connectors.

Cable Management

These are systems required for routing power and data cables throughout the building. The

products include trunking and mini-trunking, cable trays, busbars, floor boxes and technical

floors, and mini-columns.

Globally, they are the leaders in wiring devices and cable management with a market share of

20% and 14% respectively. Legrand also enjoys leadership positions in at least one of its major

business areas in a number of countries including India. Discover Legrandsmultipolarity and its

ability to leverage its global knowledge to customize its offerings locally and providing end-to-

end solutions across categories and sectors. Choosing Legrand means the assurance of benefiting

from its global expertise and local reach.

THE LEADERSHIP ADVANTAGE

Operating globally, Legrand holds leading positions in at least one business area in key markets

that include France, the United States, Italy, Brazil, India, Russia, China, Turkey and Mexico.


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These strong national positions give Legrand major competitive advantages, including the ability

To sell products that are suitable for most national marketswhere installer work practices and

consumer tastes can vary enormously, and where products, their operation and their installation

must comply with specific standards.

To offer virtually all of the products needed for an electrical installationoften as an integrated

systemfrom circuit protection panels to the connection of low-current socket outlets. Solutions

like these help customers avoid the costs, risks and delays associated with buying products from

different suppliers.

To build on the familiarity and trust generated by its market-leading products among consumers,

installers and distributors, thus strengthening the position of products that are still challengers

and growing its business.

LEGRAND - KEY FACTS AND FIGURES

Its complete offer, tailored to the commercial, industrial and residential markets, is a reference in

close to 180 countries. Innovation is an essential catalyst for growth for Legrand. It is the market

leader in at least one of its business areas in France, Italy, China, Russia, Poland, and Latin

America - in close to thirty countries in total.

In 2012

KEY FIGURES

Sales: 4.5 billion

38% of sales in new economies

25% of sales in new business segments

37% of sales from new products

Facilities in over 70 countries


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Products marketed in nearly180 countries

4500 active patents

Over 35,000 employees

Nearly 200,000 catalog items

Growth drivers

R & D 4.6 % of 2012 sales

37 % of 2012 sales were new products

Over 4,000 active patents in 2012

2,100 experts dedicated to R&D in 2012

INNOVATIONONE OF LEGRAND'S TWO GROWTH ENGINES, ALONGSIDE

ACQUISITIONS

At Legrand, we make innovation a constant priority it's an integral part of their business culture.

Innovating means creating value for everyone. Fine-tuning unique solutions. Developing new

functions for customized, intelligent building management. Making devices safer, easier to

install, more comfortable and more ergonomic, by offering products and solutions that can

function within systems. Innovation? It's exploring new territory.

ACQUISITIONS

ONE OF LEGRAND'S TWO GROWTH ENGINES, ALONGSIDE INNOVATION

Over 135 companies acquired and integrated since 1954

32 acquisitions announced since year-end 2004


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1.1 billion in annual sales with nearly 50 % in new economies and over 50 % in new business

segments

MAIN RECENT ACQUISITIONS

Legrand has announced 10 acquisitions since January 2011.

Seico, the Saudi leader in industrial metal cable trays

NuVo Technologies, spcialisteamricain de la diffusion sonorersidentiellemultipices

Daneva, Brazil's leader in connection accessories (joint-venture)

Aegide, Dutch market leader in VDI cabinets for data centers

Numeric, India's market leader for low- and medium-power UPS

Megapower, Malaysian leader in plastic cable management systems (joint venture)

Middle Atlantic Products, North America's leader in audio and video enclosures

SMS, Brazil's market leader in UPS

Intervox, French leader in connected security systems

Electrorack, US specialist in VDI cabinets for data centers

Legrand strengthens its positions in promising markets such as new economies and new business

segments by acquiring companies with leading positions or proven technological expertise.

TARGETED, SELF-FINANCED ACQUISITIONS

Legrand aims for self-financed acquisitions of small and mid-size companies in areas offering a

very good fit with its own business. Candidates typically hold leading positions and have

specialized technological expertise in growing markets.


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LEGRAND STEPS UP EXPANSION IN INDIA AND IN THE UPS MARKET BY

ACQUIRING NUMERIC UPS

Legrand announces the acquisition2 of Numeric UPS, Indias market leader in low- and medium-

power UPS1

The acquisition reinforces Legrands positions in the new economies and in the fast-growing

UPS1 market

Legrand is actively pursuing its strategy of development through self-financed acquisitions of

small to medium-size businesses with leading positions in their markets, and today announced

the acquisition2 of Numeric UPS, the UPS division of Numeric and Indias market leader for

low- and medium-power UPS1 solutions.

The Numeric UPS acquisition, which follows Legrands purchase of Indo Asian Switchgear in

July 2010, strengthens the groups presence in India, where it already holds strong positions in

miniature circuit breakers, distribution enclosures and high-end wiring devices. Numeric UPS

brings Legrand a portfolio of quality products, strong brand awareness, and an extensive sales

and service network of over 1,500 employees that covers the entire nation and rounds out the

groups reach in India. Legrand is thus strengthening its presence in a fast-growing market where

it has recorded organic growth in sales averaging nearly 25% a year over the past decade.


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The Numeric UPS transaction comes after Legrands acquisitions of Inform, Turkeys number-

one UPS provider; Meta System Energy, an Italian modular UPS specialist; and SMS, Brazils

UPS leader, and continues the groups expansion into the promising UPS market a business

line that offers an excellent fit with energy-distribution and energy-performance activities, two of

the groups growth areas.

Based mainly in Southeast India, Numeric UPS has eight production sites, a workforce of 2,500

and its sales reach nearly 80 million.

EXPERTISE AND EXPERIENCE

At Legrand, growth has traditionally been fueled by innovation and the steady stream of new,

high-end product launches this brings, plus acquisitions. We have bought over 135 companies

since 1954, in both their core businesses and in complementary segments. And in recent years

the pace has quickened: since year-end 2004, 32 acquisitions have been made, representing

annual sales of 1.1 billion. Nearly 50% of the newcomers are in new economies, and over 50%

are in new business segments.

SEIZING OPPORTUNITIES

Legrand teams are constantly on the lookout for new acquisitions, and use their in-depth

knowledge of local players to identify likely candidates in a fragmented market. This is one key

to the success of their acquisition policy: staying so closely in touch with the market makes it

easier to locate and assess investment opportunities. The same contacts make the acquisition

process go more smoothly, and facilitate integration once a deal has been completed.

A dedicated Corporate Development unit based in France and the US oversees all acquisitions,

stepping in as necessary to coordinate action by their various teams.


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MANAGEMENT

Gilles Schnepp

CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Born on October 16, 1958, Gilles Schnepp joined Legrand in 1989 as Deputy Chief Financial

Officer. He later took on the post of Company Secretary and was subsequently appointed Group

Chief Financial Officer. He became Chief Operating Officer in 2000 and in 2001 became a

member of the Executive Committee and a director of Legrand. He was Vice Chairman and

Chief Executive of the Legrand group until 17 March 2006.

Besides Gilles Schnepp, the Executive Committee comprises the following members:


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Antoine Burel

EXECUTIVE VP AND GROUP CHIEF FINANCIAL OFFICER

BenotCoquart

EXECUTIVE VP STRATEGY AND DEVELOPMENTT

Xavier Couturier

EXECUTIVE VP HUMAN RESOURCES


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FabrizioFabrizi

EXECUTIVE VP COMMERCIAL SYSTEMS & INFRASTRUCTURES DIVISION AND

ENERGY DISTRIBUTION AND INDUSTRIAL APPLICATIONS DIVISION

Xavier de Froment

EXECUTIVE VP FRANCE

Paolo Perino

CHIEF EXECUTIVE OFFICER BTICINO


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John Selldorff

PRESIDENT AND CHIEF EXECUTIVE OFFICER LEGRAND NORTH AMERICA

Patrice SoudanDEPUTY CHIEF OPERATING OFFICER & EXECUTIVE VP WIRING

DEVICES AND HOME SYSTEMS DIVISION

FrdricXerri

EXECUTIVE VP EXPORT


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LEGRAND SOLUTIONS

When you choose Legrand, the world leader in electrical and digital infrastructure for the

building industry, you put their powerful worldwide presence a guarantee of global expertise to

work for you. And you're sure to find the solutions you need among their innovative applications

in new business segments.

RESIDENTIAL SEGMENT

At the core of any solution for the residential segment is a mix of functionality and sensitively

styled design options which help an individual express his/her personality. Requirements could

vary from as basic as wiring accessories like switches, sockets, regulators, dimmers to complete

home automation solutions like scenario switches, temperature controller, clock on switches

along with taking care of your security needs through door entry kits. And all through this,

keeping in mind that everything should not only match the most demanding aesthetics and

standards but also provide a high level of comfort and convenience.

COMMERCIAL SEGMENT

Over the recent years office building designs have undergone a sea change. The reason being,

change in work practices like the constant pursuit of optimized productivity and a nomadic

culture.

An adaptable and flexible technical infrastructure is the need of the hour. This will help integrate

electrical equipment like MCCBs, distribution boards, communication networks like structured

cabling and Wi-Fi, cable management systems etc., just where you want them

All in all, the need of the hour in commercial buildings is not only to operate in a way that is

functionally optimal but also energy efficient and environment friendly.


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HOSPITALITY SEGMENT

More often than not, customer loyalty is based on attention given to the little details. Service of

the highest quality and unparalleled comfort are essential ingredients when it comes to ensuring

maximum occupancy. Elements like Wi-Fi access points, bedside panels and automation systems

can make a world of a difference. The purpose of electrical installation is not only to provide an

aesthetic feel, but also ensure that the premises functions safely and efficiently. And power and

data cable management served with wire mesh cable trays form a critical part too.

INDUSTRIAL SEGMENT

Stable, high performance solutions that guarantee optimum service continuity form the backbone

of manufacturing plants and production tools. Quick reconfiguration of the installation, including

adding of new equipment and maintenance work will have to progress with very little or no

down time at all. Above all, safety for the personnel working on the installation is of utmost

priority. All of Legrands products are designed to meet these different requirements while

adapting to the specific needs of each industry and varied environments, even the most extreme

conditions.

The product range for this segment includes P17 Tempra plugs and sockets, Hypraprisinter, P17

Tempra combined units and many more.

LEGRAND PRODUCTS

Energy distribution

DPX MCCB DRX MCCB LEXIC MCB LEXIC RCD


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INDICATOR VSP TIMESWITCH EKINOXE DB ZUCCIHINI BUSBAR DPX3160 ATS DPX3250

WIRING ACCESSORIES

Square white Tattoo round Switch and socket Gas detector USB Dimmer Universal dimmer Shutter control Fan regulator Skirting light with detector TV socket

HOME AUTOMATION

Beside panel Scenario control Dimmer Intruder alarm Multimedia touch screen Shutter control


45MPBIM

Touch plate dimmer

SAFETY AND SECURITY

Emergency lighting unit Movement detector Door entry phone

LIGHTING MANAGEMENT SYSTEM

PIR wall mounting sensor PIR ceiling mounted sensor Ultrasonic sensor

STRUCTURED CABLING

RJ 45 Fiber optic unit Patch panel Fiber optic drawer Cat 10 giga Cat 6 Wi-Fi access point Cabinets

CABLE MANAGEMENT

DLP aluminum trunking Floor boxes Pop-up boxes Mini column Floor access unit


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Cablofil wire mesh cable tray

INDUSTRIAL APPLICATION

P17 Tempra plugs and sockets P17 combined units Hypraprinster and hypra plugs and sockets Metallic plug and sockets Hypramultipin connector

TRAINING CENTRES

The training Centre offer dedicated training programs for electrical consultants, contractors,

panel builders, system integrators, architects, stockiest and their counter sales staffs, electricians

and retailers. It is Legrands belief that this will enable them to achieve complete know-how and

expertise in their respective application area. The approach is of balance methodology with focus

on theory and practical sessions, with live product set-up that gives participants an up-close

interaction with variousproducts. Well-structured training modules are developed to address

needs of specific industry and market segments.


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2013 FIRST-HALF FININCIAL RESULTS

Solid performances and 2013 targets confirmed Commercial positions in growing markets

strengthened

Gilles Schnepp, Chairman and CEO of Legrand, comments:

Solid performances in the first half and confirmation of 2013 targets

Group sales in the first half of 2013 came to nearly 2.3 billion for a total rise of 1.4%, or 2.6%

excluding exchange-rate effects. The broader scope of consolidation resulting from acquisitions

contributed 2.9% of the total.

Organic growth in sales was -0.2% for the first half, close to the central point of their organic

growth target for the full year 2013.

In a generally lackluster economic environment, this good resistance was due in particular to

strong relative performances in the United States (+8.0% organic growth in the United

States/Canada region) and in new economies (+5.2% organic growth) over the first six months of

the year.

Adjusted operating income in the first half amounted to 458 million, and came to 20.7% of

sales excluding acquisitions (20.3% including acquisitions). This good operating performance

illustrates Legrands capacity to seize business development opportunities through investments

targeting growth in buoyant markets, and also to adapt in countries affected by unfavorable

economic conditions.


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FINANCING SHAREHOLDERS VALUE

LEGRAND share price in real time

Session of 08/30/2013 at 17:35:00

Last price 38.38

Change in % -1.32%

Opening price 38.90

Close price 38.89

Highest day 39.00

Lowest day 38.38

Share volume 1 250 105

Trade value 48 394 353

Change since the IPO +94.30%

Highest since the IPO* 40.64

Lowest since the IPO* 10.20

Table No 1.3.1


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Statistics at previous closing

1 month 3 months 6 months 1 year Since the IPO*

Change Legrand (%) -0.89 +1.46 +10.75 +41.70 +96.91

Change CAC40 (%) -0.01 -0.25 +7.46 +17.97 -23.67

Share volume 10 766 836 44 349 436 79 648 046 168 507 914 1 301 105 176

Value trading (M) 422.94 1 666.26 2 917.88 5 669.77 31 093.43

* regard to the price of the institutional offering

Table No 1.3.2

Dividend per share in

Graph No 1.3.1

0

1

2

3

4

5

6

Category 1 Category 2 Category 3 Category 4

Series 1

Series 2

Series 3


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COMPETITORS INFORMATION

Schneider Electric

Schneider Electric SA (Euronext: SU) is a France-based multinational corporation that

specializes in electricity distribution, automation management and produces installation

components for energy management. It is headquartered in Rueil-Malmaison, France.

ABB

ABB is a multinational corporation headquartered in Zurich, Switzerland, operating in robotics

and mainly in the power and automation technology areas. It is ranked 143rd in the Forbes

Ranking (2010).

ABB is one of the largest engineering companies as well as one of the largest conglomerates in

the world. ABB has operations in around 100 countries, with approximately 145,000 employees

in June 2012, and reported global revenue of $40 billion for 2011.

ABB is traded on the SIX Swiss Exchange in Zrich and the Stockholm Stock Exchange in

Sweden since 1999, the New York Stock Exchange in the United States since 2001, September

2005 on London Stock Exchange and in November 2005 on the Frankfurt Stock Exchange.


51MPBIM

Havells

Havells India Ltd is a billion-dollar-plus electrical equipment company founded in 1958, with

products ranging from industrial & domestic circuit protection switchgear, cables & wires,

motors, fans, power capacitors, compact fluorescent lamps (CFL), luminaries for domestic,

commercial & industrial applications, modular switches covering household, commercial and

industrial electrical needs, water heater and domestic appliances.

Havells owns global brands like Crabtree, Sylvania, Concord, and Luminance and has 94

branches / representative offices with over 8000 professionals in over 50 countries. As of 2013 It

has 12 manufacturing plants in India located at Haridwar, Baddi, Noida, Faridabad, Alwar,

Neemrana, and 6 manufacturing plants are located across Europe, Latin America & Africa and

with more than 20,000 global distribution network.

WORLD PRESENCE

OPERATING ON A GLOBAL MARKET, LEGRAND HAS FACILITIES IN OVER 70

COUNTRIES AND MARKETS ITS PRODUCTS IN CLOSE TO 180 COUNTRIES.

Building on local operations and a wide range of products tailored to national markets, Legrand

has established a strong presence in new economies, which offer promising scope for future

growth.

PRESENCE

IN OCEANIA

Australia

PRESENCE

IN EUROPE

Albania

PRESENCE

IN ASIA

Afghanistan

PRESENCE

IN AMERICA

Antigua

PRESENCE

IN AFRICA

Algeria


52MPBIM

Fiji

Kiribati

Marshall

Islands

Micronesia

Nauru

New Zealand

Palau

Papua

New Guinea

Samoa

Solomon

Islands

Tonga

Tuvalu

Vanuatu

Andorra

Austria

Belarus

Belgium

Bosnia

Herze

Bulgaria

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Italy

Latvia

Liechtenstein

Lithuania

Luxembourg

Macedonia

Malta

Moldova

Netherlands

Norway

Poland

Portugal

Armenia

Azerbaijan

Bahrain

Bangladesh

Bhutan

Brunel

Cambodia

China

Georgia

Hong Kong

India

Indonesia

Iran

Iraq

Israel

Japan

Jordan

Kazakhstan

Kuwait

Kyrgyzstan

Laos

Lebanon

Malaysia

Maldives

Mongolia

Myanmar

Nepal

North Korea

Omen

Pakistan

Philippines

Barbuda

Argentina

Bahamas

Barbados

Belize

Bolivia

Brazil

Canada

Chile

Colombia

Costa Rica

Dominica

Dominican

Republic

Ecuador

Grenada

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Nicaragua

Panama

Paraguay

Peru

Saint

Kitts Nevis

Salvador

Suriname

Angola

Benin

Botswana

Burkina Faso

Burundi

Cameroon

Cape Verde

Central African

Republic

Chad

Comoros

Cote dlvoire

Democratic

Republic of the

Congo

Djibouti

Egypt

Equatorial

Guinea

Eritrea

Ethiopia

Gabon

Gambia

Ghana

Guinea

Guinea-Bissau

Kenya

Lesotho

Liberia

Libya

Madagascar


53MPBIM

Romania

Russia

Serbia

Monte

Slovakia

Slovenia

Spain

Sweden

Switzerland

Turkey

Ukraine

United

Kingdom

Qatar

Saudi Arabia

Singapore

South Korea

Sri Lanka

Syria

Taiwan

Tajikistan

Thailand

Turkmenistan

United Arab

Emirates

Uzbekistan

Vietnam

Yemen

Trinidad

Tobago

United States

Uruguay

Venezuela

West Indies

Malawi

Mali

Mauritania

Mauritius

Morocco

Mozambique

Namibia

Nigeria

Republic of the

Congo

Reunion

Rwanda

SaoTome

Principe

Senegal

Seychelles

Sierra Leone

Somalia

South Africa

Sudan

Swaziland

Tanzania

Togo

Tunisia

Uganda

Zambia

Zimbabwe

Table No 1.3.3


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In India, over 25 offices spread across the country, 3 state of the art manufacturing facilities with

one R&D Centre, 7 training centers and extensive network of over 6000 distribution partners,

portrays Global nature.

North

Delhi

Chandigarh

Ludhiana

Lucknow

Dehradun

Jaipur

East

Kolkata

Guwahati

Siliguri

South

Chennai

Bangalore

Kochi

Coimbatore

Madurai

Hubli

Central

Hyderabad

Vijayawada

Vishakhapatnam

Bhubaneswar

Indore

West

Mumbai (Head

office)

Pune

Nagpur

Ahmedabad

Table No - 1.3.4

Manufacturing units

Nasik, Jalgaon

Communication process at Legrand India Pvt Ltd

Communication network of the company is same as the organizational chart. The flow of

information is from top level to the bottom level. In Legrand the management follows the

traditional hierarchal communication pattern, wherein if a worker needs to communicate to the

manager, he has to follow his hierarchal path. But at the same time the manager has opened his

doors whereby anyone can walk in to communicate with him

Downward Communication

Downward communication in Legrand India Pvt Ltd moves from the top to the bottom

authority. Downward channels are used for passing on managerial decisions, policies and

programmes to subordinates down the line of their understanding and implication.


55MPBIM

Top management communicates with the lower levels through Circulars, meetings, seminars,

monthly conferences, mails etc.

Upward Communication

Upward communication in the company is when it flows from the subordinates to top

management. Upward communication is used by subordinates for transmitting information,

ideas, views and request to their superiors on relating to their jobs, responsibilities etc.

Workers communicate with superiors through regular mails, telephones, meetings etc

Horizontal Communication

Horizontal communication at Legrand is when the workers of the same position communicate

each other. It is mainly done through telephone, through mails and direct interaction.

CSR

LEGRAND HAS BEEN CONFIRMED FOR INCLUSION IN THE ETHIBEL PIONEER AND ETHIBEL EXCELLENCE INVESTMENT REGISTERS.

Legrand has been selected for inclusion in the Ethibel PIONEER and Ethibel EXCELLENCE

Investment Registers.

This selection indicates that the company can be qualified as a sector leader in terms of

Corporate Social Responsibility (CSR).

This provides recognition of the importance which the Legrand Group attaches to growing its

business in compliance with non-financial criteria of corporate social and environmental

responsibility, thereby placing human development and the environment at the Centre of its

strategy.


56MPBIM

Besides ETHIBEL Sustainability, Legrand is also present in 5 other CSR index: FTSE4Good,

Dow Jones STOXX Sustainability Index (DJSI), ASPI Eurozone, ECPI Ethical EMU Equity and

Oekom Research.

AWARDS

LEGRAND CROWNED AT THE PURCHASING AWARDS 2009 LEGRAND DISTINGUISHED AT THE CAC 40 AGM AWARDS 2012 LEGRAND SWIFTS CABLE TRAY TOOL A PRIZE-WINNER AT THE 2012

ELECTRICAL INDUSTRY AWARDS

Legrand's Swifts cable tray universal bracket won the prizes for "Best Commercial / Industrial Innovation" and for "Overall Innovative Product of the Year" at the 2012

Electrical Industry Awards.

LEGRAND RECEIVES THE "ALLIANCE" PRIZE AS PART OF THE FRENCH BUSINESS IN CHINA AWARDS

LEGRAND GROUP AND INTERVOX RECEIVE THE JURY PRIZE AT THE TROPHE DU GRAND AGE AWARDS 2011

LEGRAND WINS THE AWARD FOR EXCELLENCE IN SUSTAINABLE DESIGN IN AUSTRALIA

LEGRAND: PRIZE-WINNER AT THE 2010 OLD AGE AWARDS LEGRAND'S FINANCE DEPARTMENT WINS A PRIZE AT THE FINANCE

LEADERS AWARDS


MPBIM

LEGRAND WINS THE INNOVATION PRIZE AT THE 9TH EDITION OF THE BOURSOSCAN AWARDS

SHIDEAN-LEGRAND PROCLAIMED TOP SUPPLIER OF VIDEO DOOR ENTRY SYSTEMS

CORE VALUES


57

WINS THE INNOVATION PRIZE AT THE 9TH EDITION OF THE

BOURSOSCAN AWARDS

PROCLAIMED TOP SUPPLIER OF VIDEO DOOR ENTRY

WINS THE INNOVATION PRIZE AT THE 9TH EDITION OF THE

PROCLAIMED TOP SUPPLIER OF VIDEO DOOR ENTRY


58MPBIM

Customer awareness, Innovation, Resource enhancement and Ethical behavior are the four core

values that support their corporate culture today. They shape the groups identity and are crucial

for lastingly profitable development.

LEGRANDS COMMITMENTS

Management of the supplier panel

Suppliers are listed according to their know-how, their competitiveness, their capacity for innovation, and their compliance with their quality requirements and their sustainable

development commitments.

Purchases are globalized with a panel of preferred suppliers who are major players in their market and Legrands key partners on its international projects.

Monitoring of their performance is regularly communicated to suppliers as part of a controlled and responsible relationship based on continued improvement.

Management of supplier risks is achieved through a structured, evolving approach which is deployed at a worldwide level. Resource management

By fostering accountability, and developing the skills of all players of the purchasing function, we will contribute to achieving their goals.


59MPBIM

LEGRANDS PHILOSOPHY

1.4 VISION, MISSION AND OBJECTIVES

MISSION

The Legrand Group has committed to a progressive approach to ensure the profitable, lasting,

and responsible growth of its operations. To meet these commitments, and in line with the

Groups quality policy, we must:

Be a key partner to their internal clients (Divisions, corporate functions, and countries) in order to supply them, within the shortest lead times possible, with economical, reliable

and innovative purchasing solutions, including in terms of eco-design.

Ensure that long-term, balanced, and mutually beneficial relationships are established and developed with their suppliers as part of a clearly defined relationship, while at the same

time respecting the Groups sustainable development commitments.

Ensure the continuation of Legrand Groups purchasing performance worldwide by using all external resources.


60MPBIM

VISION

Vision name: MANTHAN

Legrand India Pvt Ltd is having a vision by reaching Rs.1700 crores plus by 2015 December

By incorporating their passion for the principles of good design across all their divisions, we create products that make the lives of all we touch better. Legrand provides the right

level of technology for the job, efficient installation, exceptional fit and finish and

outstanding customer service.

OBJECTIVES

Customer awareness Innovation Resource enhancement Ethical behaviors Employ satisfaction Staff development


61MPBIM

CHAPTER 2

ORGANIZATIONAL STRUCTURE


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2.1 CORPORATE ORGANIZATION STRUCTURE

DIRECTOR

OPERATIONS/ PRODUCTIONS

HUMAN RESOURCE

FINANCE MARKETING

PRESIDENT

VICE PRESIDENT

PRESIDENT

VICE PRESIDENT

GENERAL MANGER

Asst. GENERAL MANAGER

COMMERCIAL & ADMINISTRATIO

N HEAD

COMM

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