(Reuters) -French electrical equipment maker Schneider Electric said on Wednesday that it has agreed to buy Temasek’s 35% stake in its Indian joint venture for 5.5 billion euros ($6.4 billion) in cash.
Schneider, which is a major supplier of electrical equipment and other infrastructure for data centres, said full ownership of Schneider Electric India will help to quicken 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.
The company has sharpened its focus on India in recent years. The country is one of its four global hubs, with 31 factories there and as many distribution centres.
Schneider bought 65% of the business in 2020 from Indian infrastructure firm L&T, marking its largest acquisition in India.
The company plans to expand its capacity in India by 2.5 to 3 times. It added that it expects double-digit organic sales growth on a compound annual rate basis (CAGR) for the unit in the coming years.
Total sales in India reached 2.5 billion euros across its subsidiaries in 2024, accounting for around 7% of group revenues.
($1 = 0.8663 euros)
(Reporting by Anna Pruchnicka in Gdansk; Editing by David Goodman and Edwina Gibbs)
