Schneider Electric to take full control of India arm with Temasek stake buy for €5.5 bn

Schneider Electric, the global leader in the digital transformation of energy management and automation, has signed an agreement to acquire the remaining 35% stake of Schneider Electric India Private Limited (SEIPL) from Temasek to reach full ownership for an all-cash consideration of €5.5 billion.

The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals and is expected to close in the coming quarters.

The 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. The company believes SEIPL’s full ownership will support the speed of decision-making for India as a hub.

India is now the world’s fourth-largest economy, with expected GDP growth above 6% for the coming years, with significant opportunities in digitalisation and electrification, further supported by multiple government programs such as “Digital India” and “Make in India”.

Schneider Electric plans to double down on India, leveraging the group’s multi-hub approach. In the coming years, Schneider Electric expects double-digit CAGR organic sales growth for SEIPL. It 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.

Olivier Blum, CEO of Schneider Electric, believes India is one of the key focus markets of Schneider Electric for the years to come. He said the company aims to capture the full growth potential of the unique opportunity and leverage talents in R&D, digital and supply-chain in India to support its global operations.

Chia Song Hwee, Deputy CEO of Temasek, says the partnership with Schneider Electric proves that partnerships can create long-term value through complementary strengths and a shared vision.

In 2018, the company had partnered with Temasek to jointly acquire the electrical and automation business of Larsen and Toubro Limited (L&T E&A) and to combine it with Schneider Electric India’s Low Voltage and Industrial Automation Products business.

India is now the third-largest market for the group and one of its four hubs. In 2024, SEIPL had statutory revenues of €1.8 billion, including export sales; total sales in India were €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.