Schneider Electric SE has announced a landmark €5.5 billion ($6.4 billion) deal to acquire the remaining 35% stake in its Indian joint venture, Schneider Electric India Pvt. Ltd. (SEIPL), from Singapore’s Temasek Holdings. The all-cash deal is set to close in the coming quarters, pending regulatory approvals from Indian authorities, including the Competition Commission. Once complete, Schneider will hold 100% ownership of SEIPL.
It is the most significant corporate merger and acquisition since the beginning of 2025 and indicates that Schneider believes in India as a strategic market. Under complete ownership, the firm has the option of centralising operations through faster investment choices and easing long-term planning. On Wednesday, the company announced the acquisition.
Analysts view the move as a reflection of India’s growing role in global industrial supply chains. It also signals a broader shift in how multinationals are allocating resources toward Asia’s most dynamic economies.
India’s Expanding Role in Schneider’s Electic Global Strategy
India has emerged as one of the cornerstones of Schneider’s globalization strategy. The country has a population of more than 1.4 billion with a rising economy expected to average an increase of over 6% every year, with that there is size and momentum available. Schneider has affirmed that India will form part of its multi-hub strategy and facilitate its production and innovation objectives around the world.
Company CEO Olivier Blum stated that India is a “key focus market” and that the acquisition will allow Schneider to “capture the full growth potential of this unique opportunity.” This aligns with India’s policy environment, which continues to favor domestic manufacturing and foreign investment.
India’s role has expanded steadily within the company’s ecosystem. Schneider now ranks it among its top three markets by revenue, and has already identified it as a strategic base for both exports and global product development.
Historical Context: From Joint Venture to Full Control
The deal is pegged on a major transaction in 2018 where Schneider and Temasek made a joint acquisition of the electrical and automation business of Larsen & Toubro Ltd. It was that acquisition that resulted in SEIPL through the merge of the newly acquired business with the existing Indian operations of Schneider. The subsequent two-brand model enabled Schneider to cater to legacy and new clients with the companies, Lauritz Knudsen and Schneider Electric respectively.
Since then, SEIPL has grown to become the powerhouse in Schneider’s global network. In 2024 alone, it produced statutory revenue of 1.8 billion, and its total India sales in subsidiaries amount to 2.5 billion. Indian business is part of the global supply chain, innovation, and research and development.
Temasek’s Deputy CEO Chia Song Hwee remarked that the joint venture created lasting value and highlighted the success of public-private collaboration. He said Temasek was “privileged to journey alongside Schneider Electric India.”
Scaling Up: Capacity, Exports, and Growth Potential
Schneider has outlined aggressive expansion plans for its Indian operations. The company aims to triple its production capacity in India to meet growing domestic and international demand. It anticipates double-digit compound annual growth for SEIPL over the coming years.
This addition of capacity supports the government’s initiative to make India a global manufacturing center through the Make in India program. Schneider has invested a huge amount of capital in the area, which puts it in a great position to be both a local market leader and a global exporter in India.
Company officials also noted that India’s growing talent pool in engineering and digital technologies supports innovation-driven production. This mix of low operational cost and high technical capability offers strategic advantages for the global Schneider network.
Regulatory Clearance and Closing Timeline
This purchase is still pending regulatory approval, which will mostly take place in the Competition Commission of India and other competent authorities. According to Schneider, it hopes to get final approval in the next few quarters. Once it gets the go-ahead, the firm will integrate SEIPL entirely into its worldwide financial and operational reporting.
Full ownership will also allow Schneider to make faster, more agile business decisions in India. It removes the complexity of joint decision-making and enables a more streamlined governance model for one of the company’s most critical markets.
Analysts say this regulatory milestone could pave the way for similar transactions in the sector. It highlights India’s increasingly open stance toward foreign ownership in high-value manufacturing and technology sectors.
Implications for U.S. Supply Chains and Customers
While the transaction centers on India, its effects will ripple into Schneider’s U.S. operations. The company is a major supplier of electrical and industrial equipment in North America. With increased production capacity and R&D output from India, U.S. clients could benefit from improved supply chain reliability and product availability.
Global firms, including those in the U.S., are still under pressure to diversify supply chains due to uncertainty around geopolitical environments and cost increases. Schneider’s increased commitment in India symbolizes a rebalancing movement towards not being dependent on a single region.
Schneider’s integrated India approach can mean that U.S. partners or customers enjoy lower-risk production and shrinking delivery timelines. It also means that the company will become more competitive in the North American market by performing its manufacturing at a more cost-efficient level.
A Global Event with Long-Term Significance
Schneider Electric’s acquisition of its Indian JV, valued at 6.4 billion dollars, is a local event that is much more than a regional event; it is evidence of global strategy in action. By doing so, the firm seals ownership of a fast-expanding, successful subsidiary that is at the heart of its international strategy.
The deal demonstrates how global companies are becoming more likely to rely on South Asia to increase capacity, prevent risk, and capture the growth of emerging markets. It also puts Schneider in a better position to exercise leadership through more firm sources of operations diversification.
The deal, the biggest corporate deal of 2025 so far, is expected to be a case to learn from for how big industrial players are reshaping their global footprints. For India, it confirms the Indian economy position as a hub for international realised and union corporate extensions.
