Schneider buys out Temasek stake in India unit for €5.5 billion – Industry News

Schneider Electric on Wednesday announced signing an agreement to acquire Temasek’s remaining 35% stake in their Indian joint venture — Schneider Electric India (SEIPL) — for an all-cash consideration of €5.5 billion to reach full ownership. 

The French major 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 as much as three times. 

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, the company said. India is now its third-largest market and is one of its four hubs.

Schneider Electric aims for double-digit CAGR organic sales

It highlighted that full ownership of SEIPL will support speed of decision-making for India as a hub which is now the world’s fourth-largest economy with an expected GDP growth above 6% for the coming years.

In the coming years, Schneider Electric expects double-digit CAGR organic sales growth for SEIPL. 

Olivier Blum, chief executive officer of Schneider Electric, said, “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.”

Chia Song Hwee, deputy chief executive officer of Temasek, said, “We have been privileged to journey alongside Schneider Electric India Private Limited and we look forward to seeing them grow as a leading franchise in India.”

Transaction is expected to close in coming quarters

The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals such as from the Competition Commission of India, and is expected to close in the coming quarters.

In 2018,  Schneider Electric partnered with Temasek to jointly acquire the electrical and automation business of Larsen and Toubro and to combine it with Schneider Electric India’s low voltage and industrial automation products business. 

In 2024, SEIPL had statutory revenues of €1.8 billion (including export sales), whereas total sales in India stood at €2.5 billion across subsidiaries. Schneider Electric has adopted a “2 brands 2 sales” strategy post the initial transaction in 2018

with L&T E&A now rebranded as Lauritz Knudsen.