Schneider Electric is mulling to purchase a 35% stake in its India business from its minority partner, Temasek Holdings. The French multinational company is holding talks to acquire the remaining stake held by the Singapore government-run investment firm in Schneider Electric India for $1 billion, Bloomberg reported.
The development has been surfacing for quite some time now. Temasek’s exit from the joint venture, including a stake sale to its majority partner and an initial public offering, was reported earlier by Bloomberg.
Schneider Electric has a 65% stake in the India business, whereas the remainder is held by Temasek Holdings, the overall business, including debt is valued at $5 billion.
Schneider Electric’s Big Bet on India
This comes around a time when Schneider Electric is betting big on manufacturing in India, especially as the country is its third-largest market. The French company had earlier mentioned that it will ramp up production in India to 90% and R&D and export capabilities. Additionally, the giant had said that it has three new factories in the pipeline.
“In India, we are seeing double-digit growth, and we are very happy with the momentum here. We aim to manufacture 90% of what we sell in the region locally,” CEO, Schneider Electric, Olivier Blum had told Cnbctv18. “India is not just producing for India but also for the region and the world,” Blum had added.
Besides this, the French major has reportedly partnered with the Government of India on energy transition initiatives, particularly India’s 500 GW renewable energy target and efforts to improve energy efficiency across different industries.
Schneider Electric’s operations in India date to 1963, when it had a joint venture with the Tata Group holding company and Voltas. Later, in 1995, the French company established a 100% subsidiary of its own and presently is one of the leading providers of energy management and automation solutions in India.
