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Follow UsThe BSE-listed company’s board of directors has granted approval to Schneider Electric India’s cash offer under a business transfer agreement (BTA).
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Under the agreement, Smartlink will sell its Digilink business to Schneider which includes two manufacturing units at Goa, distribution network and about 95 employees.
Non-compete condition for a 5 years
The K R Naik promoted company has also undertaken a non-compete condition for a 5 years period for the passive networking business.
“We are pleased to enter into this agreement as the transaction recognizes the value of Digilink’s preeminent position in the structured cabling business including the brand strengths, strong network, support and dedication of our distributors and also a well qualified, capable and motivated workforce,” said Naik, Smartlink’s executive chairman.
Further he stressed that he would continue to focus on Digisol — the active networking segment arm, and Digicare business — the service infrastructure arm across the country.
India a top priority
For Schneider Electric, this is the fifth acquisition in India and has strengthened its overall business. According to Olivier Blum, Schneider Electric India’s country president, India is on the top priority for the company.
“In India you need strong network and retail distribution channel; and Digilink provides strong market access and benefits Schneider in selling and distributing its products and solutions,” Blum said.
Schneider will retain the Digilink brand and will continue to sell products in India under the same brand name. Also, it will exports products manufactured in India to other regions.
“By 2015, about 30-40 per cent products manufactured from Digilink will be exported,” Blum said.