Schneider Electric has signed an agreement to acquire the remaining 35 per cent stake of Schneider Electric India Pvt Ltd (SEIPL) from Temasek to reach full ownership.
Under the terms of the transaction, Schneider Electric will acquire the remaining 35 per cent of SEIPL for an all-cash consideration of Euro 5.5 billion (around Rs.55,000 crore)
The transaction is subject to customary closing conditions, including the receipt of required regulatory approvals such as from the Competition Commission of India, and is expected to close in the coming quarters, a release from Schneider Electric said.
Sharpening India focus
This 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. Full ownership of SEIPL will support speed of decision-making for India as a hub.
Role of Temasek
The initial transaction in 2018 entailed partnering with Temasek to jointly acquire the Electrical & Automation business of Larsen & Toubro Ltd (L&T E&A) and to combine it with Schneider Electric India’s Low Voltage and Industrial Automation Products business. Temasek has played an important role both during and after the close of the transaction in August 2020.
Growing in India
India has been delivering strong revenue and margin growth since the initial acquisition of L&T E&A with some acceleration in the past few years:
- 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.
Instrumental partnership
Olivier Blum, Chief Executive Officer of Schneider Electric commented: “We are pleased to announce this transaction and I would like to thank Temasek for their partnership that was instrumental to the success of Schneider Electric India Private Limited since the original acquisition of L&T E&A. India is one of the key focus markets of Schneider Electric for the years to come and I am very excited by the prospect to capture the full growth potential of this unique opportunity we have in the country and also to leverage our exceptional talents in R&D, Digital and supply-chain in India to support our operations in the region and beyond.”
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