2023-11-01 19:57:41
It looks like large cinema reels, stored next to each other and placed under large machines. These are in fact strips of electronic components which are about to be cut into small pieces by robots which in turn are soldered together, following a very precise order, then glued onto electronic cards.
Supervised by a single person, the production line is fully automated. It operates continuously six days a week to assemble 700 million components per year, or an average of 15 million per week on 250 different card models. We are not in an Asian country, but in Erba, in the north of Italy, in one of the seven electronic card factories owned by the Legrand group in Europe.
Producing as close as possible to consumers
“Here, everything has been designed to remain competitive, with purchases of components made at group level to better amortize fixed costs and machines that we design ourselves”explains Alessandro Salmoiraghi, the operational director of Bticino, bought by Legrand in 1989. In ten minutes, 200 components can be changed on the line, depending on orders, he assures.
At the specialist in electrical equipment, born in Limoges in 1865 in a porcelain workshop before diversifying into switches in 1919, the short circuit has always been a trademark. “Our markets have remained very national, with technical standards often different from one country to another. This represents so many barriers to entry, particularly for Asian manufacturers who prefer to sell large volumes on a reduced number of models all over the world, while for our part we have 300,000 references. This is why we seek to produce as close as possible to consumers”summarizes Benoît Coquart, the general director of Legrand, since 2018.
120 factories around the world, including 20 in France
Having spent his entire career in the company, he says he is rather proud that Legrand remains the only manufacturer to manufacture sockets and switches in France, even if he regrets that the group is often reduced to these productions alone. . They only represent around 20% of activity, compared to half twenty years ago.
With a turnover of 8.4 billion euros in 2022, or three billion euros more in the space of five years, the group continues to grow. It has 120 factories around the world, including 20 in France and carries out 40% of its activity in Europe (15% in France), 40% in North and Central America, the rest mainly in India (its 3rd market behind United States and France) and in Asia. “In India, 85% of what we sell is produced locally. In China, it’s 90%”underlines the boss of Legrand.
Sales of data center equipment have doubled in five years
Today, activity is mainly driven by the energy transition and connected products which cover a third of sales, compared to 18% in 2015. It is also boosted by small targeted acquisitions (five per year on average) to expand the catalog, like that, last February, of the Brazilian Clamper, which manufactures equipment protecting photovoltaic panels from lightning. “I look at one file per week”, specifies the boss of Legrand. In the Netherlands, for example, the group became number two in charging stations for electric vehicles with the acquisition of Ecotap.
Far from simple electrical equipment, Legrand has also diversified into the supply of equipment for data centers. A key activity. “It has doubled in five years and represents 14% of turnover, as much as the products sold for new housing”, underlines Benoît Coquard. And demand will continue to grow, according to him, thanks to the development of artificial intelligence which requires even greater equipment to host the data.
Control consumption
The champion of the electrical outlet has also become that of connected thermostats and devices allowing you to control electricity consumption. They now represent 22% of turnover. The group has greatly expanded its range, with the acquisition in 2018 of French company Netatmo, a connected home specialist. It now serves as a research center for a large part of these products, which are then industrialized locally and sold under different brands.
Legrand is thus the European number two in assisted living, with, for example, devices that provide an alert in the event of a fall. “If you are looking for a gift for the end of year holidays, we are launching a connected lock and a video surveillance system based on facial recognition”underlines Benoît Coquart, as a good salesman.
The company’s capital is not controlled
Above all, the boss of Legrand recalls that innovation helps support the group’s growth and gives investors confidence. “We devote 5% of our turnover to research and development, twice as much as our competitors”he assures.
Since the failed merger with Schneider Electric in 2001, due to the veto put on the operation by the European Commission, the founding families are no longer in the capital of the company whose head office is still in Limoges. The two largest shareholders are two American funds, MFS and BlackRock, with 10.04% and 5.15% of shares respectively, ahead of employees (3.6%).
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