Filipino conglomerate Temasek set to part ways with Schneider Electric in Indian joint venture, resulting in a monetary transaction valued at approximately $6.35 billion.
Temasek Holdings, the Singapore state investment company, has announced the sale of its entire 35% stake in Schneider Electric India Pvt Ltd to Schneider Electric for €5.5 billion ($6.35 billion or approximately Rs 55,578 crore). This transaction gives Schneider Electric full ownership of its Indian joint venture, accelerating its decision-making process and consolidating its presence in India, which is now the third-largest market for the company [1][2][3][4].
Background
The joint venture between Schneider Electric and Temasek was formed in 2018 when they acquired the electrical and automation business of Larsen & Toubro (L&T) in India. Schneider Electric combined this with its existing low voltage and industrial automation products business in India, with Temasek acquiring a 35% stake by investing about €530 million (approximately $611 million) [1][2][4]. Prior to this sale, Schneider Electric already owned 65% of the Indian operations.
Schneider Electric's operations in India are significant, with the company hosting 31 factories and employing 38,000 people there [2]. In 2024, Schneider Electric India's revenue was €1.8 billion (approximately Rs 18,189 crore) [2][4].
Implications
With full ownership, Schneider Electric can speed up strategic decisions in India, considered a key growth market and an important manufacturing hub in its multi-hub global strategy [1][2]. The company plans to expand production capacity in India by 2.5 to 3 times, reflecting its commitment to deepen its footprint there [2].
For Temasek, this marks its second major exit in India within seven months, after selling an Indian renewable energy platform for $1.5 billion in December 2024. This could indicate Temasek's strategic portfolio rebalancing or monetization after backing significant growth [1].
The deal awaits regulatory approval from the Indian Competition Commission, with closure expected in the coming quarters [3].
In summary, Temasek’s sale of its Schneider Electric India stake is a major strategic move facilitating Schneider Electric’s full control and accelerated growth in a key emerging market, while signaling Temasek’s ongoing realignment of investments in India [1][2][3][4].
In this transaction, Temasek Holdings has decided to fully divest from Schneider Electric India Pvt Ltd by selling its 35% stake, which it acquired through investing over €530 million in 2018 [1][2][4]. With this sale, Schneider Electric is now poised to boost its strategic decisions in India, a crucial growth market and manufacturing hub, by consolidating its business operations [1][2].
