Schneider to buy remaining 35% stake in India JV at €5.5 bn valuation

French electric equipment maker will acquire Temasek's stake, gaining full ownership and expanding its India operations

French electrical equipment maker Schneider Electric SE on Wednesday said it would acquire the remaining 35 per cent stake in its Indian joint venture (JV) from Temasek Holdings for an  all-cash consideration of €5.5 billion (around  $6.4 billion or ₹56,075 crore). This is part of its strategy to deepen its presence in South Asia’s fastest-growing economy.

 

The deal will give Schneider full ownership of Schneider Electric India Pvt Ltd (SEIPL), subject to regulatory approvals. This is expected to close in the coming quarters, Schneider said in a statement. SEIPL’s valuation will make the transaction the largest in 2025 so far. The deal marks a key milestone in Schneider’s long-term strategy to position India as a hub for its global operations, capitalising on the robust economic growth and government programmes to promote domestic manufacturing. 

 

“India is one of the key focus markets of Schneider Electric for the years to come,” said Olivier Blum, the company’s chief executive officer (CEO). “We are excited to capture the full growth potential of this unique opportunity and further implement our multi-hub strategy.” 

Schneider expects double-digit compound annual sales growth for SEIPL in the coming years and plans to nearly triple its manufacturing capacity in the country. India, now the world’s fourth-largest economy, is projected to grow at over 6 per cent annually, according to the Organisation for Economic Co-operation and Development (OECD). 

The buyout follows a 2018 transaction where Schneider and Temasek jointly acquired the electrical and automation business of Larsen & Toubro and combined it with Schneider’s local operations. Since then, SEIPL has emerged as the company’s third-largest market by revenue and a key contributor to global supply chains, and research and development. 

In 2024, SEIPL generated €1.8 billion in statutory revenue, with total India sales (including exports) reaching €2.5 billion across Schneider subsidiaries, the statement said. The group operates in India under a dual-brand strategy following the acquisition, with L&T’s rebranded operations now known as Lauritz Knudsen. 

Temasek Deputy CEO Chia Song Hwee said the partnership with Schneider demonstrated how JVs can create long-term value. “We have been privileged to journey alongside Schneider Electric India and look forward to seeing them grow as a leading franchise in India,” he said.