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French multinational energy tech company Schneider Electric has signed an agreement to acquire the remaining 35% stake of Schneider Electric India Private Limited (SEIPL) from Temasek in a deal valuing €5.5 billion ($6.3 billion).
Under the terms of the all-cash transaction, Schneider Electric will acquire the remaining 35% of SEIPL from Singapore-based investment company Temasek.
The initial transaction dates back to 2018, when Schneider and Temasek partnered to jointly acquire the Electrical and Automation business of Larsen and Toubro. The business was combined with Schneider Electric India’s Low Voltage and Industrial Automation Products business.
Now, Schneider Electric says it is expecting double-digit CAGR organic sales growth for SEIPL in the coming years, tapping the country as an important R&D and supply-chain hub, particularly for Asia Pacific and other emerging markets, and has plans to expand its capacity in India by 2.5x to 3x.
India is the third largest market for the Schneider group. In 2024, SEIPL had statutory revenues of €1.8 billion ($2.1 billion), including export sales; total sales in India were €2.5 billion ($2.9 billion) across subsidiaries.
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Olivier Blum, chief executive officer of Schneider Electric, said: “We look forward to further implementing our multi-hub strategy in India, capitalising on more than 60 years of impactful presence and by driving world-class product development, research, and industrial capabilities to support the various government initiatives and vision of ‘Atmanirbhar Bharat’ driving growth in years to come.”
Chia Song Hwee, deputy chief executive officer of Temasek, said the collaboration with Schneider “reflects our belief that partnerships can create long-term value through complementary strengths and a shared vision”.
The transaction is subject to customary closing conditions and is expected to close in the coming quarters.
