Business

IIE DIGITAL DESK :  Mumbai — July 30, 2025 — Schneider Electric has agreed to acquire the remaining 35% stake in its Indian joint venture from Singapore’s sovereign fund Temasek for approximately €5.5 billion ($6.4 billion) in cash. With the transaction, Schneider will gain full ownership of Schneider Electric India Pvt Ltd, transforming the company into a wholly-owned subsidiary. This bold move aims to streamline governance and further establish India as a strategic operational hub for the French industrial mechatronics leader. 

Originally formed in 2020 through the merger of Schneider’s Indian low‑voltage and industrial automation business with Larsen & Toubro’s electrical manufacturing operations, Schneider now holds majority control with 65% of the business, while Temasek retained the rest. The JV operates 31 factories and distribution centres across India, which has become Schneider’s third‑largest global market. 

The €5.5 billion price for Temasek’s stake implies a full valuation of around €15.7 billion (~$17.9 billion), which includes debt. The deal represents a strategic pivot, allowing Schneider to accelerate decision‑making, consolidate control, and further expand its India footprint. Management forecasts doubling or tripling capacity and expects sustained double‑digit organic sales growth in India. 

Confirming strong confidence in long-term prospects, Schneider said it now views India as one of its four global hubs—on par with core regions like North America and Europe. The Indian unit contributed €2.5 billion in revenue in 2024, or about 7% of group sales. 

Industry analysts highlight that India’s electrification, automation, and digitalization sectors are booming, fueling demand across residential, commercial, and data‑center infrastructure markets—areas where Schneider holds competitive advantage. The consolidation move is seen as a natural progression to capture more deeply the rising market momentum. 

For Temasek, the deal represents a strategic exit from an investment that was part of broader sustainability and energy‑services expansion via the GreeNext microgrid venture. The sovereign fund had explored alternate exit routes, including an IPO or third‑party sale; Schneider’s offer appears to deliver an efficient cash realisation amidst robust M&A activity in India.

Schneider and Temasek have not publicly commented on the final deal terms, and regulatory approvals remain pending. However, multiple sources close to negotiations indicate this agreement will close in coming weeks.

As part of operational strategy, Schneider plans to leverage India’s manufacturing base—already gearing up to export products regionally—and expand R&D capabilities, with a target of locally producing 90% of products sold domestically. The full ownership will also provide flexibility to pursue further acquisitions or public offerings regionally. 

This acquisition adds to a rising volume of cross-border deal activity in India, which saw M&A transactions totalling US $31 billion in 2025—a 16% year-on-year increase—underlining investor appetite in India’s high-growth industrial markets.

With this acquisition, Schneider Electric takes full control of its Indian operations, reinforcing India as a global hub in its strategic blueprint. The move is intended to accelerate decision-making, capacity expansion, and innovation while offering Temasek a clean exit as part of its evolving India-focused portfolio.