Schneider Electric To Gain Total Control Of India Unit, Plans To Expand Capacity In Country By Three Times

Global power major Schneider Electric announced that it inked a deal to acquire the remaining 35 per cent stake in its India unit, Schneider Electric India Private Limited ("SEIPL"), from Temasek for all-cash consideration of 5.5 billion (around 55,552 crore).

Once the deal closes, Schneider Electric will have full ownership of SEIPL. The acquisition is subject to regulatory approvals, including the one from the Competition Commission of India.

"This transaction represents the logical next step in Schneider Electric's strategic investment focus on India as both an attractive domestic growth market and one of the key hubs in its multi-hub strategy, with an R&D and supply chain platform for the region, other emerging markets and beyond. Full ownership of SEIPL will support speed of decision-making for India as a hub," said in a statement.

Hailing the upcoming opportunities in digitalisation and electrification in India, Schneider Electric said that it is "committed to support this future expansion in the country through its unique setup in India, leveraging the Group's multi-hub approach." The electric firm also mentioned the "Digital India" and "Make in India" programmes as key drivers for the transformation.

Following the deal, Schneider Electric expects double-digit CAGR organic sales growth for SEIPL. "The Group also expects to further leverage India as an important R&D and supply-chain hub, particularly for Asia Pacific and other emerging markets, and plans to expand its capacity in India by 2.5x to 3x," it said in a statement.

The French multinational first joined hands with Temasek to acquire the Electrical and Automation business of Larsen and Toubro and combine it with Schneider Electric India's Low Voltage and Industrial Automation Products business.

According to Schneider Electric, the L&T unit acquisition (now rebranded as Lauritz Knudsen) led to strong revenue and margin growth in the past few years, including India becoming the third largest market for the group, and "one of its four hubs".

The group said that in 2024, the India unit posted statutory revenues of 1.8 billion, including export sales. Total sales in India were 2.5 billion across subsidiaries, it added.

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This release was published on openPR.