Schneider Electric Infrastructure Limited (SEIL)
Know the Company
Schneider Electric Infrastructure Limited (SEIL) is a 75% subsidiary of Schneider Electric Group, France, a global leader in energy management and automation solutions. Schneider Group has nearly six decades of presence in India. SEIL has established in 2011 and headquartered in Gurgaon, focuses on delivering innovative and sustainable energy solutions to a wide range of industries. It also offers an extensive portfolio of products, including distribution transformers, power transformers, medium voltage switchgear, protection relays, and advanced electricity distribution management systems.
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The company specializes in Substation Automation Systems, featuring state-of-the-art IEDs, metering, and cybersecurity segments. SEIL is also a leader in smart grid technologies, offering solutions like advanced metering infrastructure, meter data management systems, and distribution automation. Additionally, the company provides medium voltage distribution and grid automation products catering to utilities, data centers, oil and gas, and other critical sectors.
SEIL serves diverse end markets such as power generation, transmission, and distribution, as well as industries like automotive, eMobility, healthcare, food and beverage, and water management.
Its revenue is derived from equipment sales (43%), transactional products (25%), projects (16%), and digital services and maintenance (16%). The company operates four manufacturing facilities across Vadodara, Kolkata, and Chennai. SEIL’s commitment to innovation, sustainability, and customer-centric solutions positions it as a key contributor to India’s energy transformation.
Strengths
SEIL’s has made it a key player in the Indian power sector, helping to drive the adoption of advanced energy technologies in both industrial and residential applications. Parent company of SEIL is a global leader in the power management solutions. Thus, Indian unit combines global expertise with local innovation, driving efficiency, safety, and reliability in energy management across the country.
SEIL plays a vital role in helping power Distribution Companies (DISCOMs) achieve financial stability by offering advanced energy management and automation solutions. These customized solutions help DISCOMs to reduce operating costs, improve efficiency, and boost revenues through efficient energy management practices. SEIL’s solutions also enable DISCOMs to optimize their distribution networks, minimizing losses and enhancing financial sustainability.
India ranks as the third-largest producer and consumer of electricity globally, with power demand and supply steadily increasing to fuel its progress and prosperity. The country’s power market is expanding due to population growth, increasing urbanization, and industrialization, which are leading to significant investments in boosting power generation capacity. To meet rising energy needs, new power plants are being established across conventional sources like thermal and hydro, as well as renewables such as solar and wind. It also gives immense growth opportunities for the Company.
India’s commitment to cleaner energy aligns with global environmental goals shift toward renewables sources to reduce carbon emissions and ensures long-term sustainability. SEIL contributes to this transformation by offering solutions that improve grid performance and efficiency while enabling the seamless integration of renewable energy into the national grid. This segment is witnessing rapid growth, supported by strong initiatives from the Government of India.
The parent company has set ambitious goals for its Indian operations, aiming to elevate India’s position within its global portfolio. Currently, the United States leads as the highest revenue contributor to Schneider Electric, where it gets an annual revenue of €36 billion. However, the Indian unit is determined to surpass China and become the second-largest revenue contributor. This shift is expected to attract increased investment and significant technology transfers to the Indian unit, further strengthening its capabilities and global competitiveness.
SEIL’s comprehensive portfolio features energy-efficient equipment, advanced electrical distribution systems, and cutting-edge software for energy management. Its energy monitoring and management solutions allow businesses to track energy usage and costs in real time, helping identify inefficiencies and implement process improvements. SEIL also supports businesses in transitioning to renewable energy sources, such as solar and wind power, contributing to a significant increase in renewable energy adoption.
SEIL is expanding into emerging markets such as EVs, semiconductors, and renewables while strengthening its presence in existing sectors. Rising demand for sustainable solutions and renewable energy, like solar and wind, drives the Company’s growth. SEIL also focuses on digital energy management, using IoT, analytics, and cloud computing to optimise energy use, cut costs, and improve efficiency.
SEIL has a strong presence across emerging sectors in India, with significant investments being made in electric vehicle infrastructure, railways, steel, cement, and metals. These developments, supported by favorable policies and increased investments, create a positive outlook for SEIL’s electro-intensive segments and reinforce optimism about its business environment. At airports, SEIL provided end-to-end automation solutions, improving operations and enhancing safety. In the Mining, Metals & Minerals sector, it delivered digitized equipment to optimize production efficiency.
The company is leveraging the government’s production-linked incentive (PLI) scheme to boost its manufacturing capabilities. It is also upgrading its existing facilities into “smart” plants, incorporating advanced technologies to enhance efficiency and adopt sustainable practices.
Expansions
To address India’s growing demand in the industrial and technological sectors, SEIL plans to invest Rs 3,200 crore to expand its industrial footprint nationwide by 2026. This expansion will add 1.2 million square feet of space across nine states, including Gujarat, Telangana, Karnataka, West Bengal, Odisha, Tamil Nadu, Maharashtra, Himachal Pradesh, and Uttarakhand. The company also aims to increase its workforce in India by 20% by 2026. Its plans go beyond expanding manufacturing capabilities, with a strong focus on developing advanced battery technologies and chemistries to support emerging market needs.
As part of its focus on supporting the rapidly growing data center market in India, the company inaugurated a new facility in Bengaluru during the second quarter of the current financial year. This facility, established with an investment of Rs 100 crore, is dedicated to producing advanced cooling solutions for data centers. The company’s management expects the demand for such solutions to rise significantly, driven by the expanding digital economy and the boom in cloud computing.
Order Book
SEIL has registered a 14.3% year-on-year growth in its order backlog. Its outstanding order book position, as of September 30, 2024, stood at Rs.1389 crore. In the second quarter of FY25 alone, SEIL reported an order inflow of Rs.572 crore, that was 16.3% higher than the corresponding Rs.492 crore in Q2FY24.
Financials
SEIL reported a 27% increase in its net profit for the September 2024 quarter, reaching Rs 54.27 crore, up from Rs 43 crore in the same period last year. This growth was driven by higher income, as total revenue rose to Rs 609 crore, compared to Rs 498 crore in the second quarter of the previous fiscal year.
Outlook
India aims to achieve net-zero emissions by 2070, focusing on renewable energy, energy efficiency, and sustainable practices. With strong policies and investments in clean technologies, the country is progressing toward this goal. SEIL actively supports this vision with sustainable solutions in energy, heavy industries, data centres, buildings, and infrastructure.
The government’s initiatives, like the Revamped Distribution Sector Scheme, aim to enhance distribution infrastructure and efficiency. Significant investments, including Rs 17,490 crore for the Green Hydrogen Mission and Rs 46,740 crore in the data centre industry by 2026, are boosting opportunities for companies like SEIL.
With a skilled team and innovative solutions, SEIL is positioned to lead the industry toward a sustainable future. India’s growing market and government-backed infrastructure and sustainability initiatives further enhance SEIL’s growth potential.
The company’s strategy focuses on continuous innovation and investment in high-potential areas to stay aligned with evolving customer needs. A key priority is empowering distributors and panel builders by enhancing their capabilities and fostering mutual growth. Moving forward, the company aims to strengthen its partner network, leveraging digital tools to enable seamless interactions with Schneider and enhance the overall customer experience. The Company remains committed to initiatives centered on people, processes, and products, ensuring sustained progress. With businesses increasingly adopting technology to gain a competitive edge, SEIL sees significant opportunities ahead to support this transformation and drive future growth.
Sector: Capital Goods
Market Price: Rs. 813.05 as on today
FV: Rs 2/-
Stock Name: Schneider Electric Infrastructure Ltd
BSE Code: 534139, NSE Code: SCHNEIDER
Market Cap.: ₹18678 Crore
Book Value: Rs. 16.7
Segment: Heavy Electrical & Electronic Equipment’s
Incorporation: 2011
Headquarters: Gurgaon, India
