Schneider Electric Infrastructure (SCHNEIDER) CMD 2024 Day2 summary

Strategic priorities, vision, and market positioning

• India is a key growth market, now the third largest internally, with a focus on digital transformation, sustainability, and leveraging local R&D for domestic and global needs.

• The dual-brand strategy (Schneider and Lauritz Knudsen) saturates the market, targeting both urban and rural segments, and maintains strong customer trust through continuity and innovation.

• Expansion of manufacturing and supply chain capabilities, with 31 factories and a goal to multiply India’s scale by 2.5–3x, supports both local and export markets.

• India is central to global ambitions, contributing significantly to sustainability targets and serving as a talent and innovation hub.

• The company is investing in smart factories, digital solutions, and AI-driven operations to enhance efficiency and sustainability.

Financial performance, guidance, and targets

• India’s domestic sales reached $2.2 billion (€2.2bn) in 2023, up from $2 billion (€2.0bn) in 2022, with continued strong growth expected.

• Medium-term organic revenue growth target of +7% to +10% CAGR for 2023-2027, with group margin expansion guidance at +50bps CAGR.

• Margins in India are robust and comparable across both brands, contributing positively to group profitability.

• R&D investment has increased to nearly 6% of sales, with further increases expected to support growth and innovation.

• Maintains strong investment grade credit ratings and a 14-year track record of progressive dividends.

Business developments, innovation, and customer impact

• Major investments in digital and sustainable solutions, including smart grids, data centers, and renewable energy projects, position the company as a leader in India’s energy transition.

• Launched new products for India, such as BlokSeT Lean, MasterPacT MTZ Active, Wiser 2.0, and Galaxy VXL UPS, supporting the "Make in India" mission.

• Partnerships with marquee customers in real estate, IT, sugar, and renewable energy drive innovation and sectoral transformation.

• The supply chain transformation includes smart factory rollouts, AI adoption, and significant reductions in energy, water, and CO2 emissions.

• Enhanced digital and recurring revenue models, targeting 60-65% of group revenues from digital by 2027 and 80% recurring revenue in agnostic software.