Schneider Electric Invests INR 425 Crore in India 's Manufacturing
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This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here


Schneider Electric, a global leader in energy management and automation solutions, has made a bold move by announcing substantial investment in bolstering its Indian manufacturing capabilities.  The company plans to double its manufacturing capacity by consolidating six of its existing factories in Bengaluru into a new, state-of-the-art smart factory.  The company will invest INR 425 crore (approximately USD 56 million) in the new facility, which will consolidate six existing factories and create over 1,000 new jobs.

The new factory is part of Schneider Electric’s global strategy to develop more than 100 smart factories around the world. These factories will use cutting-edge technologies to be more sustainable, efficient, and agile. The Bengaluru factory will be no exception, and will use new technologies to reduce its environmental impact and improve its production processes.

The Indian manufacturing sector is witnessing exponential growth, projected to reach a value of USD 1,360.00 billion by 2024 and expand at a CAGR of over 8% through 2028. Driven by favorable government initiatives like the ‘Make in India’ program, rising domestic demand, and a strategic focus on sustainability, the sector is attracting foreign investment from companies like Schneider Electric.

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Schneider Electric’s investment highlights the vast potential of the Indian market, but also underscores some of the key challenges that companies may encounter. Strengthening partnerships and alliances with local suppliers, navigating the regulatory landscape, and ensuring the protection of intellectual property are crucial factors for success.

Moreover, to maximize benefits, companies like Schneider Electric may need to explore increasing the extent of indigenization. This could involve partnering with local suppliers, developing local manufacturing capabilities, and integrating with India’s existing supply chains.

India is actively shaping its manufacturing ecosystem with supportive policies and targeted initiatives. The success of programs like ‘Skill India’, designed to develop a skilled workforce, along with the emphasis on sustainable manufacturing will prove to be significant drivers of growth in the coming years. 

Beyond Schneider Electric, several notable partnerships are driving advancements in the Indian manufacturing space like Bosch and Siemens who joined forces to accelerate the adoption of Industry 4.0 technologies in Indian manufacturing facilities. Additionally, collaborations from Tata Motors and Dassault Systèmes focuses on leveraging advanced 3DEXPERIENCE platform for collaborative design, engineering, and manufacturing processes, aiming to streamline production and enhance product quality for Tata Motors.


This post is a part of Climate G2I Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.

G2I stands for Gateway 2 India, and provides comprehensive market intelligence and go-to market assistance for International firms entering the Indian climate-tech market. More about Climate G2I from here




About Narasimhan Santhanam (Narsi)

Narsi, a Director at EAI, Co-founded one of India's first climate tech consulting firm in 2008.

Since then, he has assisted over 250 Indian and International firms, across many climate tech domain Solar, Bio-energy, Green hydrogen, E-Mobility, Green Chemicals.

Narsi works closely with senior and top management corporates and helps then devise strategy and go-to-market plans to benefit from the fast growing Indian Climate tech market.

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