Legrand ANZ has now more than doubled its footprint and sales with acquisitions, on top of its existing successful operation, cementing its position as a grand global specialist in electrical and digital building infrastructures, with top quality products, blocks of great marketing, top talent down under and industrial robots – see the full video interview a little further below!
With robust automated production lines and industrial robots creating quality products and parts, designed and destined for businesses and consumers alike, Legrand is a true success story of the modern age, yet with nearly 160 years of global history, and 34 years in Australia.
The company’s stellar growth continues, under Legrand ANZ CEO Palash Nandy, with strategically important acquisitions adding strength, sales and added manufacturing prowess. making Legrand a worldwide powerhouse and true specialist in electrical and digital building infrastructures, dedicated to supporting technological, societal and environment change around the globe.
Here is our video interview in full, Legrand’s impressive story is further detailed below – please watch and read on!
The company says its “purpose is to improve lives by transforming the spaces where people live, work and meet by delivering solutions that are simple, innovative and sustainable”, and that “with nearly 38,000 employees around the world,” the company and its staff “work hard every day to make the buildings of tomorrow more sustainable and connected for everyone.”
Indeed, Legrand Australia itself designs, manufactures and distributes over 15,000 items under several premium brands, including HPM, Legrand, BTicino, Cablofil, Raritan, Servertech and now Australia Plastic Profiles which operates under the AussieDuct and Pipe King brands.
So, what else makes Legrand stronger than ever?
Well, with the most advanced modern and high-tech local manufacturing it has ever had, Legrand ANZ is an absolute powerhouse, adding greatly to its global capabilities, with its recent acquisitions over the past few months a force multiplier of epic proportions – and the strategic renovation TV show partnership a delicious cherry on top.
You can see some of the videos Legrand has shared from its partnership with TV show “The Block” further below – as well as being able to watch full episodes of the TV show at the link in this sentence.
Indeed, the acquisitions Legrand ANZ have made are even more strategic than the TV show partnership because of their excellent value for Legrand and its customers. Its most recent acquisition is of Australian Plastic Profiles (APP) something that happened after the video interview above was filmed, with APP a market leader in PVC conduits in Australia, doubling the size of Legrand in Australia, adding close to AUD $170m in FY24 sales.
This follows the acquisition of VASS, in June this year, with VASS the Australian specialist and market leader in Busway power distribution solutions, while the acquisition of Mechanical Support Systems (MSS), the New-Zealand market leader in cable management solutions, further expanded Legrand’s domestic operations scale and local industry footprint, with these explained in the video interview above.
Of the APP acquisition, Palash Nandy said: “Legrand’s global strategic roadmap centres on organic growth driven by innovation and targeted acquisitions. Australian Plastic Profiles joining our portfolio of strong brands and products demonstrates our confidence in, and ambitions for, the Australian and New Zealand market,”
“We are delighted to welcome the Australian Plastic Profiles team into the Legrand family. Australian Plastic Profiles’ product range is complimentary to Legrand’s and this allows both companies to benefit from compelling business synergies, in addition to providing an enhanced suite of solutions that improve lives for our customers. Investing in a company whose products are fundamental to the electrical and plumbing infrastructure of any building, enables Legrand to have more balance between residential and non-residential business,” addedPalash.
And what about Legrand’s technologies being used not only on home renovation TV show “The Block”? What has Legrand done here?
You’ll find more information in the video above, but also in these articles at Legrand’s website:
- Smart Home Made Simple with Legrand
- How inspiring were the main bedroom reveals on The Block
- Get Inspired By The Latest Smart Home Trends by Legrand
- The Future is Here: Control your Home via Voice and App with Excel Life Smart, As Seen on The Block
And you’ll find more at Legrand’s YouTube channel here.
So, what is the AI summary of the video above, after which you’ll find the full transcription?
AI Generated Summary:
Legrand’s Global Presence
Palash discussed Legrand’s global footprint, including its presence in Australia for over 30 years, with significant local manufacturing and a strong revenue base.
Local Manufacturing
Emphasising the importance of local manufacturing, Palash noted that 40% of their revenue comes from products made in Australia and their continuous investment in increasing this footprint.
Industry 4.0 and Automation
Palash highlighted Legrand’s focus on Industry 4.0, using customised automation to improve efficiency, quality, and productivity in manufacturing.
Sustainability Initiatives
We discussed Legrand’s commitment to sustainability, including using recycled materials, renewable energy, and reducing electricity consumption.
Partnership with The Block
Palash explained Legrand’s sponsorship of the renovation show ‘The Block’ for the second year, showcasing Legrand’s residential products and solutions.
Use of AI
We learned how how Legrand uses AI for automating routine operations, data analytics, product design, and predictive maintenance, enhancing both efficiency and customer service.
Acquisitions
Palash discussed recent acquisitions of MSS in New Zealand and VASS Electrical Industries in Australia to strengthen Legrand’s portfolio and enhance local manufacturing.
Customer-Centric Approach
Palash emphasised the importance of listening to customers to design and support products that meet their needs, ensuring technology simplifies their lives.
Future Growth
Palash outlined Legrand’s growth strategy through innovation, acquisitions, and continuous improvement, aiming to add value to customers and invest in local manufacturing.
Leadership Philosophy
Finally, Palash shared personal insights on leadership, emphasising the importance of being open to learning and developing future leaders, memories of his first computer, and great advice received in life.
Conclusion
Legrand emphasises its global presence, commitment to local manufacturing, sustainability, and innovation, aiming for continuous growth and customer satisfaction.
Here is the full transcript:
Alex 00:00:07
Well, hello and thank you for joining me for another Alex on Tech and TechAdvice.Life TV video interview. I’m here today at the Legrand Facility in Sydney, one of a number that are in Australia and also around the world, and I’m here today with Palash Nandy. He is the CEO of Legrand Australia and New Zealand, which is a global specialist in electrical and digital building infrastructure, offering solutions for residential, commercial and industrial markets, and focuses on improving lives through innovative and sustainable solutions. So welcome to TechAdvice.Life TV.
Palash 00:00:41
Thank you Alex for having me.
Alex 00:00:42
Well, thank you for taking the time. I just had an excellent tour of the factory floor, which we’ll speak about, butPalash, can you please just give us a bit more detail on Legrand Australia, the brands that you have on offer, and the solutions, and just a bit more about this incredible facility.
Palash 00:01:00
My pleasure. So Legrand is as the name suggests, a French global firm. We are roughly around 8.4 billion euros in terms of size, 38,000 people present all across the world. Australia, we came more than 30 years back. So it’s been here for more than three decades now. Yeah. And over a period of time, businesses have increased.
So today we are roughly around 200 million in terms of revenue, 200 million Australian dollars. We’ve got around 500 people across both sides of the ditch. In Australia, we have around 300 people, 200 of whom work in this facility. And in terms of product offer, we’ve got roughly around 22,000 SKUs that we sell here. And close to 14 or 15,000 of those SKUs are manufactured right here.
Alex 00:01:55
Yeah. Well, as I was saying, I had a factory tour, and it was… A lot of the machines are actually creating the technology right here. I’ve got to come back and do a proper filmed tour because it’s just so spectacular to see local manufacturing. If you think it’s all made in China, it’s not.
Palash 00:02:14
So 40% of the revenue that we do is out of products that are manufactured in Australia. So we are quite bullish about our local manufacturing footprint and we are constantly investing to increase this footprint.
Alex 00:02:29
And you were showing me or Daniel was showing me some of the areas where you had a number of people in individual stations and that’s now been automated and the production and the quality and the productivity has been increased dramatically by having effectively robots, automated manufacturing, some of which or most of which has been customised by you. You can’t just buy this stuff off the shelf.
Palash 00:02:51
So we are paying a lot of focus on Industry 4.0 because this is we strongly believe is the way going ahead and not just… It is not just only in terms of efficiency, but it is also in terms of maintaining the consistency of the quality, because this is something that the Legrand brand has got a lot of value for. So yes, Industry 4.0 is something that we are constantly looking at investing more and more on.
Alex 00:03:18
Sure. And I was saying that there’s a lot of recycling of bits of plastic, it can be remelted down and reused, so the environmental aspect is of prime concern to Legrand as well.
Palash 00:03:27
Correct. So this is, I mean, we have a roadmap which we call as a CSR roadmap, we are on the fifth roadmap. Each roadmap is for a period of four years, so which means for the last 20 years we are on this roadmap. And a big part of the roadmap is how sustainable we can be. So just to give you a flavour, 30% of the plastic that we use in manufacturing is recycled, 40% of the metal that we use is recycled material, 70% of the energy that we use is recycled.
The electricity that we use is renewable and this next year would become 100%. We are reducing our consumption of electricity by 20% compared to 22% even if our volumes have gone up. So, yes, a lot of effort, packaging as an example, we have a new interesting roadmap of sustainable packaging, less is more is the idea. In terms of the way we design products, we call it eco-design, so the weight of the products have to be less, it has to be more sustainable, more energy efficient, etc., etc. So, yes, sustainability is a big, big, big pillar of us.
Alex 00:04:40
And, I mean, I love technological evolution and progress and this is just another example of that in action. Why waste resources when you don’t need to? Now, you’re also one of the sponsors of The Block, I understand, for the second year running and The Block, of course, is in its 20th season. So just tell us about this partnership and what you’re doing. And some of the grand products and services that you expect to see in the show.
Palash 00:05:05
So as you said that we are in the second year of the block, so we have got around five apartments that are getting redone, plus some common area. And since we are very strong on the residential segment, we thought that this is a good opportunity to showcase what all we can do. So, whatever is needed in a house, whether it is simple switches or sockets, or smart home products, or door entry, or power, or protection, lighting, and for common areas, your exit signage, etc.
So we are providing all of that. And it would be interesting to see how the designers are playing with that, and how do they offer an interesting solution to the customers.
Alex 00:05:55
And also to the renovators who are deciding what to put where. Absolutely. I’m sure they’re going to think of things that will surprise you, and hopefully delight you.
Palash 00:06:04
Absolutely.
Alex 00:06:05
And for those wondering, The Block is a renovation show in Australia, 1.3 million viewers per episode, which is big numbers in Australia. I mean, I’m sure this gets sold internationally on different networks, but it’s really going to be a fantastic showcase.
Palash 00:06:18
We are quite excited about it.
Alex 00:06:20
Well, you wouldn’t have gone for a second year if you weren’t happy, so. Absolutely. Now, also we have AI that’s better and smarter than ever before. I don’t know how much AI you can put into individual switches, but how are you using AI to do better manufacturing, better customer service, I mean, in those industrial aspects of AI?
Palash 00:06:39
So for us, AI has got, let’s say, different usages. So as I was, or as Daniel was telling you a little while back, that we have tied up with Microsoft globally to use the copilot, which for us is called Coleg. (sounds like Colleage)
Alex 00:06:57
Which you were telling me is part of Copilot and Legrand.
Palash 00:07:05
So, we’ve partnered with Microsoft and what we are trying to do is many things. First of all, that how can we use AI in our everyday operations. So, how can we automate all the routine operations so that people can be utilized in more value added work. More productive. Rather than repetitive.
Alex 00:07:26
Yeah.
Palash 00:07:27
So, AI is getting used there a lot. A lot of usage is happening in terms of data and data analytics, the big data analytics. So, it saves a lot of time. Even in simple stuff like when you are having meetings to use to take all your meeting notes and to give you a summary and stuff like that. So, there is a lot of usage of that that we are doing which is to run your everyday operations.
Alex 00:07:56
And AI as we know it, this generative AI, is not even too useful. So, I mean, we’re all learning together how to, you know, the use cases, and I’m sure you’re discovering new ways to use it on a regular basis.
Palash 00:08:07
Then it is getting used in terms of designing of products. Then we are also using it in many places across the world into the product itself, like, for example, can I use AI to do predictive maintenance? So, you know, we sell UPSs a lot across the world. UPSs require repetitive maintenance.
Can I use AI to predict the problem rather than, and therefore proactively solve it rather than wait for the problem to happen and then solve it? So, there are usage cases like these that is getting worked on across the world. On the other hand, last bit is that we also see AI as a big business opportunity. Data centres is a very, very key segment. for us. Not just residential. Exactly and therefore more and more AI is meaning that the data centre world is changing and changing rapidly.
It’s becoming much more dense in terms of usage of power etc. and this gives us a business opportunity because it’s bang in the centre of our business strategy. So it is beneficial for running the operation, designing products, implementing changes in the products but also a very good business opportunity.
Alex 00:09:32
I’m sure Microsoft would love to have you as a wonderful case study of all the different ways you’re using it and that’s how every business should be taking advantage of the benefits that AI brings. So you can really make a material. It’s not just the robots that can you know automate what took six people before. It’s you know the business side of things which you’ve described. And you know what we see that.
Palash 00:09:52
You know we need not necessarily make AI as a big big beast. At the end of the day, as you were telling us, it’s a co-worker, it’s an assistant and many a times we forget to use what I call as CS technology, which is common sense.
Alex 00:10:16
I like to joke that we have OI, organic intelligence, sometimes we forget to use it.
Palash 00:10:21
So if you use this, it’s a very good assistant.
Alex 00:10:26
And just talking about the industrial side of things, I mean, Legrand isn’t just residential. You’ve recently acquired Mechanical Support Systems, or MSS, in New Zealand and VASS, I’m sure, Electrical Industries in Australia. And you’ve done this to strengthen and widen your portfolio and enhance local manufacturing. We’ll talk about manufacturing in a moment, but how do these acquisitions help the business and industrial side of Legrand? Well, here it is. What does this say about your commitment to local manufacturing?
Palash 00:10:58
So, two or three things. Globally, Legrand gets 40% of its revenue from residential, which tells you that 60% of the revenue comes from non-residential, which was not the case in Australia. So, therefore, one of our objectives was to balance this equation more. And, therefore, we have been focusing on the non-residential segment for quite a few years now, organically. And then, when these opportunities emerged, we decided to take these opportunities on board.
And MSS, for example, is very strong in the non-residential segment, and especially within data centres in New Zealand.
Alex 00:11:41
Which is, as you were just saying, a growing area. All the AI chips, you know, everything.
Palash 00:11:47
It’s a big focus for us, globally, data centres. Data centres is roughly 30% of the revenue of Legrand. So, MSS gave us this opportunity to get into that area. and the product is very complimentary to what we do. Then in terms of us, it was again the same story, 50% of the revenue comes from data centres, 50% from non-residential, other industry, logistics, solar farms, etc. So again, it was a good opportunity and a good compliment to our… And on top of that, the added benefit was that these two also gave us access to more local manufacturing, and this fits in very well with our strategy of increasing local manufacturing.
Alex 00:12:36
Well, as I was saying, we had this show floor tour, and I mean, it’s just incredible the amount of precision machines in so many different areas, whether it’s metal, plastic, the actual manufacture of little switches with tiny little screws and testing of the buttons. I mean, this is a powerhouse, it’s a showcase.
What else do we need to know about Legrand that I haven’t already asked that the audience should know?
Palash 00:13:00
So as I said earlier that Legrand is a global firm and growing very well, a very, very healthy organisation. We have a very healthy 20% plus EBIT. This allows us to reinvest back into the organisation. So we believe in this simple philosophy that you make good margins, reinvest that margins into the organisation whether in developing products, R&D, development of people, development of facilities, technology, etc.
And that allows you to grow more and become stronger which allows you to get more margins. So this is a very virtuous cycle. Continuous improvement. And this is where we are constantly focusing on is that how can I add value to customers. We are not here to just sell a product. We are here to make a difference to the customer’s lives which is why we say that the purpose of our business is to make a difference. And if we are unable to do that, then we are not really serving the purpose of doing business.
And this is something that has helped us a lot across the world, including in Australia and New Zealand. And as I said, at a time that people have a doubt about local manufacturing in Australia, we are investing a lot in this space. And in the coming days, you will again see a lot of demonstration of this investment in local manufacturing. So we are quite bullish about the Australia and New Zealand market, which is also the reason why we are investing so much here.
Alex 00:14:41
And it just adds to the Legrand’s ability to manufacture globally in lots of different territories and also localise where necessary.
Palash 00:14:49
So we call ourselves a local company. We are global as an organisation, but very local in our approach. So therefore, we call ourselves as “glocal”.
Alex 00:14:58
I think I’ve heard that somewhere. So how do you see Legrand evolving over the next year through to the end of the decade in a nutshell?
Palash 00:15:08
We will continue to grow.
Alex 00:15:12
I guess continue to improve the processes here and add new technologies, use AI in new ways.
Palash 00:15:18
So for us everything starts from let’s say growth. So we have these two engines of growth as we call it. One is organically through innovation and which is where we invest a lot. 5% of our global revenue is invested in R&D every year. So it’s a healthy amount, 8.4 billion, 5% of that. Billion with a B. So one side is this.
The other side is growth through acquisitions. So the example of MSS and WAS here. But just to give an example, this year itself, till date, we’ve done acquisitions. So, we are very active on this space. So, our future going ahead is growth and the growth is going to come from satisfying customer needs, whether the stated needs or the unstated needs. And we will constantly keep on using technology to try and see how we can do our jobs better, use process to ensure that we are very efficient. And one very important distinguishing factor for us is that we don’t want technology to overwhelm people.
Alex 00:16:36
We want technology to be an enabler for people. It can’t be tech for tech’s sake. Tech succeeds when it’s invisible. You just hit the button or you walk in the room and it comes on.
Palash 00:16:45
Absolutely. If I cannot make your life easier by using technology, then I haven’t made the good use of technology. So, this has been a focus and this is the single thing that, that we do. This is what makes a big difference at the marketplace and that is why we are so confident about the growth ahead. And one of the things that I always think about when.
Alex 00:17:09
I talk about this is that your customers are your greatest R&D resource as well. They must come to you, you know, globally with ideas, pain points, oh help us make this, help us make that. Absolutely. And that’s always exciting too because, you know, customers come to you with ideas.
Palash 00:17:21
Absolutely. And we have this, I mean, whenever we are designing products, we have this philosophy, if I may say so, called listen, design, make, support. That if I cannot be outside in, in my designing, then one thing is certain that my design is not good. So listen first to the customer, then design it, then make it as per the design that you’ve done and then support it throughout its life cycle. So this is, it’s simple, but so very effective in helping us to do our job.
Alex 00:18:00
Because the sale as such doesn’t end when you’ve shipped a product, you’ve got to support it and that’s just an ongoing process.
Now one of the questions I’d like to ask as we get towards the end of the interview is to ask if you could please share a memory of your first personal computer.
Palash 00:18:15
That was a long, long, long time back. So I still remember those days I was in India in a city called Calcutta on the east side of India and we just had one desktop in our office. Windows? DOS? DOS. DOS, yeah. Because that came before Windows. Young people wouldn’t know. And we had to learn Lotus 1, 2, 3. Wow, wow, wow. So all those people who say that Excel is complicated, we had no idea.
Palash 00:18:49
Yeah, now you can use AI to do it all for you, right? In Office 365. So I still remember since we had only one desktop, so it was, time was short.
Alex 00:19:00
I was going to say time sharing, yeah.
Palash 00:19:02
And for us as sales guys, I was a sales guy at that time, for us as sales guys, we had to come on Saturday, which was a holiday, to come and do our sales MIS reports. So I have this memory of having to go on a Saturday to the office to do sales MIS on Lotus 123.
Alex 00:19:21
And now we have so much power in our hands, we don’t, you know, appreciate it, especially if you weren’t alive with all those computers, with the green screens, no mouse, keyboard shortcuts, it was all standard. And my second last question is to ask if you could please share some of the best advice that you’ve received in life to help you get where you are today.
Palash 00:19:40
So I’ve been fortunate in terms of getting a lot of mentors during my professional career. So I have received many good advices, but I remember two very, very distinctly because it is imprinted in my head. So one, which said that… You have to be very comfortable with the fact that you don’t have all the answers.
No matter whichever position you are in, you will not have all the answers and you have to be comfortable with the fact that you don’t have all the answers, which allows you to then learn from everybody, from whether people at your level, above you, below you, anywhere. So, this is something that has helped me a lot in terms of growing, because when you are ready to learn from everywhere, knowledge is everywhere. And the other thing that when I was just about to get into the role of a leader, somebody had told me that the main job of a leader is to manufacture more leaders.
Alex 00:20:50
That’s very good.
Palash 00:20:51
So, these are the two things that is imprinted in my head. So, for me as a leader, I’m running the organization. It’s part of the job, but the main job is to manufacture money.
Alex 00:21:06
So you’ve been in manufacturing for a long, long time. So what is your final message to the viewers and the readers?
Palash 00:21:16
Final message to the viewers and the readers is to help us, to keep us on our toes, demand the very best from organizations like us. As I said, demand the best of the technology, but not technology to overwhelm you, but technology to simplify your life. And encourage organisations that do local manufacturing and are responsible organisations.
That’s all is my request from all of you, because that gives us the strength to do more, let’s say, in the future.
Alex 00:22:12
Thank you so much for the tour. It’s been fascinating and eye-opening. There’s some people I know in robotics. I’d love to introduce them to everything you’ve got here because they’d be fascinated. And I hope we can speak again in the future.
Palash 00:22:24
Absolutely. And thank you for coming here, Alex. Thank you. It was very nice to have this interaction with you. Likewise. Thank you. See you later.