Schneider Electric Acquires Full Control of Indian Unit in $6.4 Billion Deal

Schneider Electric has just made a bold move in India’s energy and automation market. On July 30, 2025, the French company revealed plans to purchase the final 35% stake in its Indian subsidiary from Temasek for roughly $6.4 billion (€5.5 billion). This step gives Schneider full ownership of a business that has become one of its fastest‑growing global hubs.

We are looking at more than just a financial transaction here. The deal highlights how India is becoming central to global industrial and digital strategies. Schneider’s Indian unit already runs 31 factories and distribution centers and generated about €2.5 billion in sales in 2024,  roughly 7% of the company’s total revenue. Gaining full control means Schneider can scale faster, make decisions locally, and capture the full benefit of India’s rapid industrial digitalization.

We will analyze why this acquisition matters, what it tells us about India’s role in the global energy market, and what future opportunities and challenges lie ahead for Schneider Electric.

Background on the Joint Venture

We first note that in 2018, Schneider and Temasek jointly acquired Larsen & Toubro’s electrical and automation business. Schneider took a 65% stake; Temasek took the remaining 35%. In 2020, the deal closed formally, combining L&T’s operations with Schneider’s existing Indian assets.

Terms of the Deal

The acquisition involves €5.5 billion in cash, giving Schneider full ownership of SEIPL. The deal still needs clearance, mainly from India’s Competition Commission, and is anticipated to be completed over the next few quarters.

Strategic Rationale

• India has become Schneider’s third-biggest market and serves as one of the company’s four key global growth hubs.
• The firm operates 31 factories and an equal number of distribution centers in India.
• Full ownership will speed decisions, align governance, and allow faster execution in this key region.

Market Context & Broader Trends

India is the world’s fourth-largest economy, with GDP projected to grow at over 6% annually in the coming years.
Government programs like “Digital India” and “Make in India” boost demand for digital energy, automation, and infrastructure solutions.

Financial & Operational Impact

• In 2024, SEIPL reported statutory revenues of €1.8 billion, while total India sales across Schneider’s subsidiaries reached €2.5 billion, about 7% of group revenue.
• Schneider aims to boost its India capacity by about 2.5 to 3 times and anticipates double‑digit organic sales growth in the next few years.

Risks & Challenges

• The acquisition needs regulatory approvals, especially from antitrust authorities in India.
• Integrating full control poses execution risk, including aligning teams and scaling operations smoothly.
• There may be a financial impact: some analysts say the deal may raise leverage, with modest potential dilution to earnings per share.

Industry & Investor Perspective

• Competitors like Siemens, ABB, Eaton, and local firms are also ramping up in India’s fast-growing market. Schneider’s full ownership gives it a competitive edge through speed and scale.
• Investors may view this as a long-term value play. Full control unlocks EBITDA and margin opportunities tied to India’s automation boom. Key growth indicators to track are India’s revenue CAGR and the progress on capacity expansion milestones.

Conclusion & Future Outlook

The deal places Schneider Electric in a strong position to tap into India’s accelerating growth potential. As SEIPL expands in manufacturing, R&D, and digital transformation, we expect innovation in India for India, and innovation from India serving global markets. If execution goes as planned, the company could deliver strong returns and further reinforce India’s role in its multi-hub strategy.

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This content is for informational purposes only and not financial advice. Always conduct your research.