Schneider Electric (SU) 2024 India Investor Event summary

Macroeconomic and Policy Context

• India has transitioned from a highly regulated, slow-growth economy to the world's fastest-growing large economy, driven by structural reforms such as GST, the Insolvency and Bankruptcy Code, and a focus on ease of doing business.

• Digital transformation has enabled financial inclusion, rapid payments, and a thriving startup ecosystem, with India leading globally in real-time digital transactions.

• Massive infrastructure investments have delivered millions of homes, toilets, water, and electricity connections, and expanded roads, supporting urbanization and economic growth.

• India is aggressively pursuing green energy, aiming for 500 GW of renewables by 2030 and leadership in green hydrogen and ammonia by 2047.

• Key challenges include geopolitical instability, disrupted global supply chains, the need for sustainable urbanization, and broadening economic participation.

Strategic Vision and Growth Ambitions

• The vision is to transform India into a $30 trillion economy with $18,000 per capita income by 2047, requiring a 9x GDP increase and 16x manufacturing growth.

• Sustained growth depends on activating the full population, expanding manufacturing, and ensuring balanced regional development.

• Urbanization, good governance in populous states, and leveraging demographic advantages are central to the long-term strategy.

• Policy predictability, private sector empowerment, and a focus on education and health are seen as critical enablers.

• Key megatrends include digitization, AI, climate change, and energy transition, with an addressable market expected to grow from €400bn in 2023 to over €500bn by 2027.

Company Strategy and Market Outlook

• The company aims to empower energy and resource efficiency, targeting to be a trusted digital partner for sustainability and global impact.

• Market trends such as climate and energy transition, digitalization, and AI are accelerating, supporting a 6%-7% market growth outlook by 2027.

• Long-term targets remain unchanged: 7%-10% organic revenue growth through the cycle by 2027, with robust margin development and ~50bps EBITA margin expansion.

• Capital allocation priorities are stable: investment in credit ratings, progressive dividends, organic growth, and disciplined portfolio management, with no major M&A assumed but remaining an opportunistic option.

• Maintains strong investment-grade credit ratings, recently upgraded by S&P and Moody’s, and increased R&D investment.