Schneider Electric Takes Full Control of Indian Unit in €5.5 Billion Deal to Triple Local Capacity

Synopsis : French energy and automation giant Schneider Electric will acquire Temasek's 35% stake in Schneider Electric India (SEIPL) for €5.5 billion, gaining full ownership. The move positions India as a pivotal R&D and supply chain hub, with plans to triple capacity to meet surging demand in Asia and emerging markets.

Schneider Electric, the French multinational specializing in energy management and automation, has announced its acquisition of the remaining 35% stake held by Singapore’s Temasek in its Indian joint venture, Schneider Electric India Private Limited (SEIPL). The all-cash deal, valued at €5.5 billion, grants Schneider complete ownership of SEIPL and signals a robust commitment to India as a strategic growth and innovation hub.

The move aligns with Schneider’s multi-hub global strategy, where India plays a critical role as the company’s third-largest market and one of its four key global hubs. With this acquisition, Schneider aims to streamline decision-making and accelerate operations in India — the world’s fourth-largest economy, forecasted to maintain a GDP growth rate of over 6% in the coming years.

Schneider Electric plans to triple its manufacturing and R&D capacity in India, further anchoring the country as a vital supply chain node, especially for the Asia-Pacific and other emerging markets. The company has also projected double-digit CAGR organic sales growth in India over the next several years.

CEO Olivier Blum emphasized the company’s confidence in India’s potential, calling it a “unique opportunity” that Schneider is ready to fully harness. Meanwhile, Temasek’s Deputy CEO Chia Song Hwee expressed pride in their collaborative journey and optimism for SEIPL’s future.

The transaction remains subject to regulatory approvals, including clearance from India’s Competition Commission, and is expected to close in the coming quarters.

This acquisition follows Schneider and Temasek's 2018 joint venture that involved the acquisition of Larsen & Toubro’s electrical and automation business. Post-merger, SEIPL had adopted a dual-brand strategy, with L&T E&A being rebranded as Lauritz Knudsen.

With €2.5 billion in total India sales in 2024, Schneider’s renewed focus on the subcontinent signals an era of deeper investment, accelerated innovation, and scaled-up operations.

Schneider Electric, Temasek, India investment, SEIPL, energy automation, R&D hub, manufacturing growth, Asia Pacific strategy, Lauritz Knudsen, economic expansion

Disclaimer : The information in this article is based on publicly available sources and company announcements. It is intended for informational purposes only and does not constitute financial advice or an investment recommendation.