Schneider Electric announced Tuesday it will acquire the remaining 35 per cent stake in its Indian unit Schneider Electric India Private Limited from Singapore’s Temasek for €5.5 billion (around $6.4 billion) in cash, giving the French industrial technology company full ownership of its Indian operations and supporting speed of decision-making for India as a hub.
The deal represents Schneider Electric’s strategic focus on India as both a key domestic market and manufacturing hub for Asia Pacific and emerging markets, with an R&D and supply chain platform for the region, other emerging markets and beyond. Schneider said it was the logical next step in its strategic investment focus on India, its third-largest market and one of its four global hubs.
The Indian unit recorded statutory revenues of €1.8 billion in 2024, while total sales across all subsidiaries in India reached €2.5 billion. The company expects double-digit compound annual growth rates for its Indian operations in coming years.
“Considering Schneider’s strong belief in the future potential of its India business, timing is opportune to take full control and capitalize on future value creation given India’s economic tailwinds,” it said. The company plans to expand its Indian manufacturing capacity by 2.5 to 3 times to support government initiatives including “Digital India” and “Make in India.” The company has maintained operations in India for over 60 years and employs significant research and development capabilities in the country.
“India is one of the key focus markets of Schneider Electric for the years to come and I am very excited by the prospect to capture the full growth potential of this unique opportunity we have in the country and also to leverage our exceptional talents in R&D, Digital and supply-chain in India to support our operations in the region and beyond,” said Olivier Blum, Chief Executive Officer of Schneider Electric.
The transaction is expected to close in the coming quarters.
The acquisition builds on Schneider Electric’s 2018 partnership with Temasek to jointly purchase Larsen and Toubro’s Electrical and Automation business, which was subsequently rebranded as Lauritz Knudsen.
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