Schneider Electric, a European energy management company, is betting big on India with plans to invest `1,400 crore in the next two years to build five new factories. Currently, it has 30 factories in India, the company’s third-largest market and the largest talent hub with 34,500 employees.
“India is integral to Schneider Electric’s progressive strategy, and the role of this hub will only grow manifold in the coming years,” said Jean-Pascal Tricoire, chairman and CEO, Schneider Electric.
The increased focus by companies on environmental, social and governance (ESG) and decarbonisation initiatives in the last two-three years has accelerated the demand for energy management solutions.
“Since last two years, people are really looking at the level of CO2 emissions and 80% of the CO2 emissions comes from energy. We help small, medium, and large companies to go through their entire decarbonisation journey by helping them on the strategic front as well as digital with a lot of software and data,” Olivier Blum, executive vice president, Energy Management Business, Schneider Electric, said in an interview.
According to reports, till date, about 4,500 companies in the world have publicly committed to achieving net-zero carbon emissions. “This is a big change compared to what it used to be…it is a big acceleration. What is interesting is that it is not just the large companies but also the medium-sized ones…we are focused and committed to helping these companies go through this transformation,” said Blum.
India is also the research and development (R&D) hub for Schneider Electric with 6,000 employees working on various R&D projects to build solutions locally for India and the world. India is also among the four hubs of innovation for the company along with the US, France, and China. According to the company, 80% of the solutions built in India are deployed in India, given the uniqueness of the market.
The company is also using emerging technologies to deliver the appropriate energy management solutions to its clients. “What will enable energy to become smart is digital. For instance, you can install a lot of hardware in a building, but what helps you to make it really more energy efficient is to capture the data and be able to use machine learning and artificial intelligence to help these buildings be completely self-managed…So digital is the biggest game changer to become the winner,” said Blum.
As part of its growth strategy in India, Schneider has also been betting on acquisitions. In 2020, Schneider Electric acquired Larsen & Toubro’s (L&T) Electrical and Automation business for `14,000 crore in an all-cash deal. The L&T unit made voltage switchgear, energy management systems, industrial automation systems, and metering solutions, among other products. As part of the acquisition, more than 5,000 employees of L&T’s electrical and automation business became a part of Schneider Electric’s team in India.