Strategic Realignment in a High-Growth Market

French industrial giant Schneider Electric is reportedly in advanced talks to acquire the 35% stake held by Singapore-based investment firm Temasek in its India operations. The deal, valued at $1 billion, would place the overall valuation of Schneider Electric’s India joint venture at $5 billion, making it one of the largest industrial M&A transactions in recent months.

This potential transaction is seen as a strategic move by Schneider to consolidate its control over the Indian arm a key growth engine in the company’s global operations. Temasek acquired its stake in 2018 when Schneider merged its electric distribution business with L&T’s electrical and automation (E&A) division to form the current JV.

Why Schneider Wants Full Control Now

India has emerged as one of the fastest-growing markets for Schneider Electric, with strong demand for automation, smart manufacturing, green energy systems, and digital grid infrastructure. The India JV contributes significantly to Schneider’s global revenue and has become a major export and R&D hub.

By buying out Temasek’s minority holding, Schneider seeks to :

• Gain full strategic and financial control

• Streamline decision-making in its India operations

• Deepen its commitment to long-term investments in India’s clean energy and digitisation drive

Background : The L&T E&A Deal and Temasek’s Entry

In 2018, Schneider Electric formed a joint venture after acquiring L&T’s electrical and automation division for ₹14,000 crore. As part of the deal structure, Temasek was brought in as a minority investor with a 35% stake, helping fund the transaction and diversify risk.

Since then, Schneider has led the JV's operations, which now spans smart buildings, industrial automation, data center power solutions, and green energy projects serving both domestic and export markets.

Now, with rising valuations and stable performance, Temasek appears ready to exit and monetise its investment.

Industry Context: M&A Heating Up in Industrial Tech

India’s industrial automation and smart infrastructure sectors are witnessing increased global investor interest amid government-led digitisation, Make-in-India incentives, and energy transition mandates.

This potential buyout follows a broader trend of multinationals doubling down on their India operations—either through direct expansion or by consolidating JVs. If closed, the Schneider–Temasek transaction could set a benchmark for valuations in India's smart infrastructure space.

Final Word

The proposed $1 billion buyout by Schneider Electric is more than just a financial exit for Temasek—it’s a statement of confidence in India’s strategic role in Schneider’s global vision. Full ownership could allow Schneider to ramp up R&D, exports, and energy-tech innovation from its Indian base—unlocking new efficiencies and agility in one of the world’s most promising industrial markets.

All eyes will now be on final negotiations, regulatory clearances, and whether the deal proceeds to closure in the coming months.