Wed, Jul 30, 2025

Temasek Nets 10-Fold Gain with S$8.2 Billion Stake Sale in Schneider Electric India

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Team S

Team S

Posted on Wed, Jul 30, 2025

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Temasek Holdings, Singapore’s state investment company, has sold its 35 percent stake in Schneider Electric India Pvt Ltd (SEIPL), an Indian joint venture with French multinational Schneider Electric, for 5.5 billion euros (S$8.2 billion) in cash, marking a tenfold return on its initial investment. The deal, announced on Wednesday, transfers full ownership of the joint venture to Schneider Electric, strengthening the French company’s strategic focus on India as a key growth market and global hub.


Temasek acquired the 35 percent stake in SEIPL for 530 million euros in 2020, when Schneider Electric merged its Indian low-voltage and industrial automation product unit with the electrical and automation operations of Larsen & Toubro Ltd. The joint venture, established in 2018, has since grown into Schneider’s third-largest market by revenue, generating 1.8 billion euros in statutory revenue in 2024, with total India sales, including exports, reaching 2.5 billion euros across Schneider’s subsidiaries.


Schneider Electric, a global leader in energy management and automation, emphasized that full ownership of SEIPL will enhance its decision-making speed and agility in India, a critical hub in its multi-hub global strategy. The company operates 31 factories and 31 distribution centers in India, positioning the country as a cornerstone for its research, development, and supply chain operations, particularly for the Asia-Pacific and emerging markets. Schneider projects double-digit compound annual growth in SEIPL’s organic sales in the coming years and plans to scale its Indian operations by 2.5 to 3 times.


“This transaction represents the logical next step in Schneider Electric’s strategic investment focus on India as both an attractive domestic growth market and one of the key hubs in its multi-hub strategy,” Schneider Electric stated in a press release. Olivier Blum, the company’s CEO, underscored India’s role, noting, “India is one of the key focus markets of Schneider Electric for the years to come.”


The deal, subject to regulatory approval from India’s antitrust regulator, the Competition Commission of India, is expected to close in the coming quarters. It follows earlier reports in July 2025 that Schneider was in talks to acquire Temasek’s stake for approximately US$1 billion, which would have valued the joint venture at US$5 billion, including debt. The final transaction price of 5.5 billion euros reflects a significantly higher valuation, underscoring the venture’s growth and India’s rising importance in global markets.


Temasek’s exit aligns with its broader investment strategy in India, where dealmaking activity is surging. Mergers and acquisitions in India reached US$31 billion in 2025, a 16 percent increase from the previous year, according to Bloomberg data. Temasek has been active in the region, recently investing US$1 billion in Indian snacks maker Haldiram and increasing its stake in Italian luxury group Ermenegildo Zegna to 10 percent. Chia Song Hwee, Temasek’s Deputy CEO, highlighted the success of the Schneider partnership, stating, “We have been privileged to journey alongside Schneider Electric India and look forward to seeing them grow as a leading franchise in India.”


The sale reflects growing investor confidence in India’s economic potential, driven by its status as the world’s most populous nation and government initiatives promoting domestic manufacturing. Schneider Electric’s deepened commitment to India includes plans to manufacture 90 percent of its products locally and expand its research and development capabilities, further solidifying the country’s role in its global operations.


The transaction marks a significant milestone for both companies, with Temasek securing a substantial return and Schneider Electric positioning itself to capitalize on India’s rapid economic growth and industrial transformation.


Sources: The Business Times International, The Hindu BusinessLine, Business Standard, News18, NDTV Profit


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