Schneider Electric Acquiring Full Ownership
Schneider Electric has revealed its plans to purchase Singaporean investment firm Temasek’s remaining 35% stake in their India joint venture, Schneider Electric India Pvt Ltd (SEIPL), for a whopping 5.5 billion euros, equal to around Rs 55,465 crore.
Strengthening Operations in India
The agreement, announced on Wednesday, will allow Schneider Electric to achieve full ownership in SEIPL through an all-cash transaction. This move is expected to enhance the speed of decision-making for the company’s third-largest market in India.
India holds significant importance for Schneider Electric, serving as a key hub in its multi-hub strategy. The country is not only seen as a lucrative domestic growth market but also as a pivotal R&D and supply chain platform for the region and other emerging markets.
Strategic Partnerships in the Past
In a strategic alliance back in May 2018, the French industrial giant collaborated with Temasek to jointly acquire the Electrical and Automation business of Larsen and Toubro Ltd. This business was then amalgamated with Schneider Electric India’s Low Voltage and Industrial Automation Products segment.
Over the years, Temasek played a crucial role in the joint venture, especially during and post the acquisition of L&T E&A in August 2020. With the enterprise value of the deal pegged at Rs 14,000 crore, Schneider Electric and Temasek contributed a significant amount in cash towards the acquisition, alongside debt financing.
This acquisition, subject to regulatory approvals, signals a major milestone in Schneider Electric’s strategic move to solidify its presence and decision-making capabilities in the vibrant Indian market.
For more details on this exciting development, you can visit Schneider Electric India.
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