Schneider Electric sees opportunities across sectors as India powers energy transition

Schneider Electric India – a global energy management and automation major -- is bullish on the growth opportunities India presents with a slew of energy transition and infrastructure measures by the government, along with emergence of new areas like data centres, home automation and water management. In an exclusive conversation with Fortune India, Deepak Sharma, MD and CEO, Schneider Electric India says the company is planning for future growth in India, keeping all the opportunities in mind and the next phase India investments plans will be rolled out soon.

Q. India is a major market for Schneider Electric. How has the performance of the company in India been?

A. We announced our global result recently. We have grown at over 8% globally. India is the third biggest market for the group after the US and China and we have been delivering double digit growth for the last few years. 2024 has been a very encouraging year with double digits growth again. Schneider, as a group, is doing very well in the country.

Q. Which are the market segments that have contributed to growth for Schneider in India?

A. Everything is doing well. It may be debatable but, generally every part of the industry is doing well. The reason being we are in a development phase. Investments are happening across the segments, be it infrastructure, buildings, airports, metro, water, luxury homes, affordable housing, EV infrastructure and data centres and smart energy – smart grids, smart meters.

Of course, some are doing better than the others. But the momentum is visible in most of all the segments. Also, we have to honestly accept, it is not only about growth. India is in an energy transition phase with our climate commitment goals in place. The growth is not a product of capital expenditure, but the segments themselves are evolving. So, I would say happy times in the country. With all the emission challenges, we are redefining the usage. So opportunities are cutting across the segments.

Q. What is the capacity expansion plan to cater to the dynamically growing Indian market? Any investments lined up by the company in the country?

A. India is number three company for the group. The country is putting in efforts to become the third largest economy globally. At that pace, the opportunities are huge. So, the question is are we ready for that growth? I think we are all optimistically positive. But we have to build more. We already have thirty-one factories in the country. Almost two years ago, we announced investments of Rs 3,200 crores. That is now in execution and we would be completing that phase of expansion now. It was not only about building new factories, but also to build our R&D capabilities, for India as well as for the group. Same goes for our manufacturing plant in India. A big part of our manufacturing from India is going to around thirty countries in the world.

Q. Please share in details the progress made on the Rs 3200 crore expansion plan, the company has been executing in India?

We have now thirty-one factories running. We opened one last year and we have three more coming up this year. They are new plants at new site.

Q. What about the next phase of investments?

A. Post the current phase of expansion, we will have to go back to the drawing board again and define the Indian 2027 and India 2030 plan, in which we would come up with new investment plans. It seems to be a growth story for years to come.

Q. As the various sunrise sectors rise and unfold, which are the new areas that look promising, because a lot of work is happening on the GCC, data centres, water management and automation front?  

A. Energy is the common back bone for all the growth sectors in the country. We will power all of them. One which will probably use a lot more energy is data centre. Digitisation is being talked about by almost every one. That means, when you will digitise your assets more data will come, which would eventually need more data centres. It is not only touching the industrial side but also our personal lives too.

I am very optimistic on data centres apart. It will need a lot of power and use technology from companies like us. Beyond data centres, infrastructure remains the core, be it airport, metros, railways and mobility. We still have to build more buildings and residences. All these sectors are very promising. The growth rate may differ, but I see opportunities coming in every segment.

Q. What about the prospects from solarisation?  

A. A lot of discussion is happening on how to make the grids smart and connect the discoms, as we feed more non-fossil, the solar source, into the ecosystem. Discoms are not only feeding power but are now becoming a platform of exchange of energy. Consumer is no more a consumer but also a prosumer. That will happen through technology. So, again very promising future in the country in this segment.

Q. Interesting term there, Prosumer – the same consumer being a producer too, especially with schemes like PM Surya Ghar Bijli Yojana. What opportunities do these disruptions bring for the company?

A. So, the story is not just about powering by solar. The story is how do you power and how do you give the power of energy management to the end consumer. From just a consumer, one is now a producer. So, the word is prosumer. There is now analytics, and artificial intelligence involved. One would like to consume when it is available cheap and would want to make money when it is desirable from a tariff point of view, by feeding to the grid. Here one would need a full energy management solution. 

You need solar, invertors, storage, and that is where the smart home story comes. So, the whole story of producing, using efficiently, and storing, and give it back to the grid at the right moment bringing revenue, engages everyone. And that is where the true sense of engagement and involvement of each stakeholder comes in solving the energy transition challenge.

 Q. How does the company plan to scale up exports from India?

A. The expansion in last investment cycle was for both India and India for the globe. We already export the thirty countries from India. A major part of our production is already going out. With the dynamic of India as a manufacturing hub, we see a lot of good opportunities. As I said, the next cycle of investments, on which we are working upon, and is likely to be ready in the coming months will consider both India for India and India for world.