Schneider Electric to acquire full stake in Indian JV

French electrical equipment manufacturer Schneider Electric announced on Wednesday that it has reached an agreement to purchase Temasek’s 35 per cent stake in its Indian joint venture for 5.5 billion euros ($6.4 billion) in cash.

Schneider, a leading provider of electrical equipment and infrastructure for data centres, stated that acquiring full ownership of Schneider Electric India will accelerate decision-making in its third-largest market.

“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,” it said in a statement.

In recent years, the company has increased its emphasis on India. It is one of the company’s four global hubs, with 31 factories and an equal number of distribution centres in the country.

The company intends to increase its capacity in India by 2.5 to 3 times. It also anticipates double-digit organic sales growth on a compound annual rate basis (CAGR) for the unit in the upcoming years.

Attribution: Reuters
Subediting: M. S. Salama