Schneider Electric’s India Expansion: Strengthening Operations and Export Growth 2023
Schneider Electric’s India Expansion: Strengthening Operations and Export Growth 2023
Schneider Electric, a global leader in energy management and automation solutions, has announced its ambitious plans to expand its operations in India.
This move not only reflects the company’s confidence in the Indian market but also underscores the potential of India as a strategic hub for exports. Here’s a detailed breakdown of Schneider Electric’s new initiatives and their implications.
Schneider Electric, headquartered in Rueil-Malmaison, France, has been a key player in the energy and automation domain for decades. It provides integrated efficiency solutions, combining energy, automation, and software.
With the construction of a new facility in Haridwar, Uttarakhand, the firm is also venturing into the production of solar panels. The factory is anticipated to be operational by the middle of 2024.Schneider Electric already has 30 facilities in India, and three months ago it bought a tiny business called Zenatix to diversify its clientele.The corporation has developed a strategy plan for, among other things, a decarbonized and decentralised energy landscape, which is one of its main aims.
The firm aims to achieve carbon neutral operations by 2025, operations that are “net-zero ready” by 2030, a value chain that is entirely carbon neutral by 2040, and net zero CO2 emissions throughout the full value chain by 2050.
According to the firm, we have identified the top 1,000 suppliers and are working to secure their commitment to the 2050 renewable energy objective. “Out of the 1,000, 70 are in India, and we are assisting these suppliers in areas around smart manufacturing and digitization, helping them accelerate their energy efficiency and sustainability goals.”
To support its development aspirations in the nation, the firm wants to recruit an additional 200 suppliers, including micro, small, and medium enterprises.
Currently, the firm is responsible for handling 700 MW of renewable power purchase agreements and offering sustainable solutions, including the installation of solar panels on-site and the purchase of off-site solar and wind energy.
In its global ecosystem, the company collaborates with the largest partner, integrator, and developer community on its open platform to deliver real-time control and operational efficiency.
India, with its rapidly growing economy and thrust on digitalization and infrastructure development, presents immense opportunities for companies in the energy and automation sectors.
Recognizing this potential, Schneider Electric had already made significant investments in India over the years, establishing R&D centers, manufacturing units, and a vast network of distributors.
Schneider Electric is planning to open new manufacturing units to cater to the increasing domestic demand and to streamline its export potential. These units will employ state-of-the-art technology and are expected to increase the overall production capacity.
The company intends to enhance its R&D capabilities in India. By tapping into the nation’s pool of talented engineers and tech professionals, Schneider Electric aims to develop solutions that are not only relevant for the Indian market but also for global clients.
Schneider Electric emphasizes training and skill development. Their expansion will include initiatives to train the local workforce, ensuring that they are equipped with the necessary skills to contribute effectively.
In alignment with India’s commitment to sustainable growth, Schneider Electric’s new facilities will abide by the highest environmental standards. They aim to minimize carbon footprint, utilize renewable energy, and engage in responsible waste management.
While Schneider Electric already exports a range of products from India, the expansion will introduce more products to its export list, enhancing its global offerings.
Schneider Electric plans to use its Indian operations to target emerging markets in the Middle East, Africa, and Southeast Asia. The proximity and existing trade relations make it feasible and economically viable.
With new manufacturing units, the company aims to improve its logistics operations, ensuring faster delivery times and reduced transportation costs.
The move will directly result in job creation, both in the short term (construction, setting up facilities) and the long term (operations, R&D, logistics).
Schneider’s emphasis on training will lead to skill enhancement of the Indian workforce, making them globally competitive.Their commitment to green initiatives will pave the way for other companies to adopt environmentally-friendly practices.
Schneider Electric’s decision to expand its India operations reflects the growing importance of India in the global manufacturing and R&D landscape. With a balanced approach towards domestic market development, exports, and sustainable growth, Schneider Electric’s move is not just a testament to India’s potential but also a model for other multinational corporations considering expansion in the region.
