Electrical industry: Who moved the "acquisition" heart

When it comes to the electrical industry, we must mention the city of electrical appliances Liu City; also mentioned the acquisition of the electrical industry, but also can not help but mention the city of Liushi Zhengtai, Delixi and the people of the three major electrical giant.

From a small workshop and small factory in the past to today, the electrical industry enterprises, which are an important part of the national economy and people’s livelihood, have also experienced ups and downs. However, when they developed to the current scale, they faced various difficulties and The response and achievements made by the issue are worth thinking and drawing from all the companies that are developing and struggling.

The past and present of the three giants began in 1994. On the basis of the existing development, Nan Cunhui adopts a variety of capital operations such as joint ventures, holdings, acquisitions, mergers, and brand intangible assets, and has conducted horizontal operations with 48 companies in the city of Liuzhou. In the alliance, Chint Group was eventually formed.

In the same way, in May 1994, Hu Chengzhong established the Zhejiang Delixi Group Corporation with the approval of the relevant provincial authorities.

Zheng Yuanbao, the People's Group known as M&A Maniac, has continuously acquired 66 small businesses in Wenzhou since 1996 and established the People's Group. In 1999, he entered Shanghai and integrated 34 state-owned and collective enterprises.

This is the earliest acquisition activity in the electrical industry. The formation of large groups such as Zhengtai, Delixi, and the people can be said to have affected the upgrading and transformation of the entire electrical industry.

Nan Cunhui once said that for most entrepreneurs, personal money is enough and can support more than a dozen of their lives, but for the development of the enterprise, funding is scarce. Because the bigger the company is, the more difficult it is to upgrade again, the more resources and costs it will have to spend.

For the transformation, Zheng Yuanbao believes that the development, transformation, acquisition and upgrading of China's manufacturing industry are the key. The transformation is the choice of specialization or integration. Acquisition is a big issue, and upgrading is a road to technology and intelligence.

But now, with the development of the national economy and the influx of foreign multinationals, the Qianjiang Evening News has authored "2010, the Big Three of Liuzhou City to whip overseas". As far as companies go overseas and lay out overseas issues, each of the three entrepreneurs has one. Fan answered.

Nan Cunhui's answer is that we have been actively making a reserve of talents. We have entered a new round of expansion of the company's cycle, and we will definitely take action.

Hu Chengzhong's goal is to use Ningbo's port advantages to deliver Delixi Electric products to all parts of the world.

Zheng Yuanbao said that Schneider and ABB can come to China and why our products cannot occupy the international market.

Schneider's "Winning War"

In December 2006, multinational companies Schneider and Delixi signed a joint venture agreement.

Hu Chengzhong said that the joint venture company will introduce Schneider Electric's advanced technology and modern management experience, so that China's private enterprises and the world's leading companies complement each other, innovation and development, enhance the German West brand, and accelerate the pace of internationalization.

Zhao Guohua, chairman and chief executive officer of Schneider Electric's management board, said that this cooperation will open up a brand new business model for Schneider, relying on its unique and unique retail underwriting network, will independently market in the low-voltage electrical product market with competitive advantages.

According to the report of China Electromechanical Industry, some people in the industry have revealed that after the joint venture with Schneider, the profit growth of Delixi in the low-voltage electrical appliance industry is in multiples. What Hu Chengzhong learned from Schneider is the SWOT situation management system and other information management models.

However, the dean of the Institute of Management of the Chinese Academy of Sciences, Dean Lu Benfu, when he was guest Sina Finance, put forward the idea of ​​foreign capital cooperation, acquisitions and mergers and acquisitions because the biggest feature of China is the relatively low cost of manufacturing labor, and the main purpose of foreign companies is to combine China's low-cost manufacturing capacity grafted onto its brand to obtain higher monopoly profits.

The First Financial Daily reported that the former Deputy Minister of China's Ministry of Machinery, Lu Yanzhen, said that the joint venture is an open market operation. He also said that he was worried. "The strategy for foreign capital entry is clear, that is, to take the initiative."

Prior to this, Schneider senior Chen Gang had ridiculed him, saying that Schneider would not adopt a low-price competition strategy.

Zhao Guohua said to "Chinese Entrepreneurs" that "Since we established a joint venture in China in 1987, we have maintained a partnership with all our joint venture partners. Schneider Electric is not a company that does everything by itself. We do not fully understand China. So our partners help us develop in China."

Nan Cunhui, who has been playing with Schneider for 13 years, believes that although foreign investors can bring in the impact of ideas and the collision of foreign cultures, the ultimate goal is to jointly create a brand of the world.

The "weak" Jedi counterattacks in the face of acquisitions, the impression that the acquired company should be in a weak position, but if you do not want to lose your own brand and business, what can companies do?

“Chinese enterprises must establish self-confidence.” Just as Nan Cunhui did when facing the international giant Schneider, in addition to strengthening the protection and construction of intellectual property rights, he also sought to transform and upgrade the industry.

Another example of Pan Jiaowu, who was also in a lawsuit and won the same battle with Schneider, was similarly able to give us some inspiration. In order not to let the company close down, Pan Jiaowu kept holding the indictment and finally found Schneider did not apply for a design patent. Also consulted a professional patent reexamination person learned that he could obtain a lawsuit suspension by applying for an invalidity of the other party's patent. Finally insisted on running for 5 years to find evidence.

Gao Tianle said when participating in the National “Two Conferences” accepting the Netease interview that the Government’s work report encourages them to go out for acquisitions, “We must do what we can to do our best and do our best. We must first do a good job internally and have the ability to gradually "Advance." The same applies to the day-to-day operations of the acquired company.

Applying a sentence in the "Chinese Journal of Mechanical and Electrical Industry", is Schneider's "Wolf" or "Catfish" in the city of Liuzhou? Is the acquisition of whether the electrical industry enterprise is a "worry wolf" or a "squid?" Everything depends on the company itself.

In the future, we look forward to new developments in the electrical industry.

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