Schneider Electric South Africa country president Eric Léger
Photo by: Duane Daws
The new country president of international energy management specialist Schneider Electric has hinted to possible acquisitions in the South African market as part of a concerted strategy to accelerate the expansion of the company both domestically and within the Southern African region.
Eric Léger, who took over from Carl Kleynhans on April 1, says the company is “simply too small”, particularly in the context of a group that typically occupies either the leading or the second position in most of the market segments in which it operates globally.
In 2012, the 140 000-employee group reported revenue of €24-billion and net income of €2-billion, with 82% of revenue arising from North America, Western Europe and Asia Pacific – revenue arising from Africa contributed to the 18% balance from the ‘rest of the world’.
After six weeks at the helm, Léger has already overhauled the internal structure of the South African unit to align it to this growth vision, having made several new appointments, including the appointment of Canninah Mapena as director of its key energy division.
The structure lays emphasis on commercial property, water, solar and export prospects. But it also stresses the importance of greater mining, minerals and metals market penetration.
The 40-year-old French national, who has spent a good portion of his 17 years within the group in fast-growing Asian countries, reports that Schneider is beginning to prioritise African opportunities, having given much attention over the past few decades to penetrating Asia and the Americas.
“This is the moment for Africa,” he enthuses.
He sees significant potential to capture higher levels of market share in the medium- and low-voltage market segments, as well as increasing sales of its energy efficiency solutions.
South Africa’s low growth rate is not viewed as a constraint, owing to Schneider’s current modest market shares, which makes “double- and even triple-digit growth possible”.
However, part of the strategy might involve “acquiring scale”, with any corporate activity likely to focus on expanding market-share rather than on technology-driven deal.
South Africa would be used as the gateway through which to take on expanding prospects in the region, but Léger stresses that the group also intends establishing a permanent presence in countries such as Angola, Mozambique and Zambia in the not too distant future.