Singapore-based Temasek Holdings has exited its 35% stake in Schneider Electric India, selling it back to Schneider Electric for €5.5 billion (approx. S$8.2 billion). The stake, initially acquired in 2020 for €530 million, marks a 10x return on investment in just five years. The strategic move solidifies Schneider’s control of its India operations, enhancing execution agility in one of its key growth markets.
In a major cross-border corporate development, Temasek Holdings of Singapore has divested its entire 35% stake in Schneider Electric India to its joint venture partner Schneider Electric SE for €5.5 billion (approx. S$8.2 billion), securing an estimated tenfold return on its original 2020 investment of €530 million.
The transaction positions Schneider Electric for complete control over its Indian operations, allowing it to streamline decision-making and reinforce India’s role as a strategic hub for its global industrial automation and energy management businesses.
Background of the JV
The Indian joint venture originated in 2018, following the merger of Schneider Electric’s Indian low-voltage and industrial automation units with the electrical and automation business of local conglomerate Larsen & Toubro. Temasek acquired a 35% stake in the merged entity two years later for €530 million, a move seen then as a long-term bet on India’s infrastructure and industrial growth.
Also Read: National Leadership Meets Global Investment at Temasek
Strategic Significance for Schneider Electric
The French industrial major, whose legacy dates back to 1836, has been steadily consolidating its India presence. This acquisition is termed a “logical next step” by Schneider, giving it full ownership of its Indian arm and enabling it to accelerate localisation and responsiveness in a dynamic and competitive market.
“India is an essential market in Schneider Electric’s global portfolio. Full ownership enables greater agility, tighter control, and better integration across our global and local strategies,” the company said in a statement.
The deal highlights Schneider’s confidence in India as a core manufacturing and digital infrastructure node, especially amid ongoing efforts to shift supply chains away from China and towards more stable and scalable emerging markets.
Temasek’s Long-Term Bet Pays Off
Temasek’s exit underscores its sharp investment acumen in India. The 10x return within five years ranks as one of its most profitable India-based divestments to date. The Singaporean state investor has shown continued commitment to India’s economic potential, especially in sectors like consumption, sustainability, and digitalisation.
Most recently, Temasek has expressed interest in increasing its exposure to Indian family-owned businesses, aligning with its long-term thematic approach to backing trusted enterprises in high-growth economies.
READ MORE ON
