Schneider Electric Infrastructure Ltd Management Discussions

We are at the forefront of driving the digital transformation in energy management across various sectors including data centres, infrastructure, and other industries. Schneider Electric Infrastructure Limited (SEIL/Company) is dedicated to manufacturing, designing, constructing, and maintaining advanced technological solutions for electricity networks.

As the world undergoes rapid digital transformation, driven by a burgeoning digital economy, we recognise the pivotal role of technologies such as the Internet of Things (IoT), and big data analytics in enhancing efficiency, fostering innovation, and bolstering competitive advantage for businesses.

Our commitment to innovation empowers our customers and partners to successfully navigate the evolving landscape of energy management through digital transformation. Leveraging our cutting-edge technologies, anchored by EcoStruxure™, we facilitate digitisation to enable our customers to achieve greater efficiency, safety, reliability, connectivity, and sustainability.

Our product portfolio encompasses a diverse range, including Transformers, Power Transformers, Switchgears (Primary & Secondary), Medium Voltage breakers, Protection Relays, Differential Relay, Automation Solutions, E-House solutions. Our primary markets span across Power Generation, Transmission & Distribution, Oil & Gas, Transportation, Mining, Minerals & Metals (MMM), Data Centres, Semicon and heavy industry, amongst others.

Schneider Electrics purpose is to empower all to make the most of our energy and resources bridging progress and sustainability for all. In todays global landscape, sustainability ranks among the top priorities for enterprises worldwide.

Global Economy

During the period under assessment, the global economy exhibited resilience, rebounding from the enduring effects of the geopolitical tensions like Russias conflict in Ukraine and ongoing challenges related to the cost of living. Notably, inflation, which peaked in 2022, has receded more rapidly than anticipated, alleviating its impact on employment and economic activities. This positive shift can be largely attributed to improvements on the supply side and strategic measures implemented by central banks to stabilise inflation expectations.

Global growth for 2023 stood at 3.2%, maintaining stability through 2024 and 2025 at the same rate. However, this falls short of the historical average of 3.8%, owing to restrained monetary policies, reduced fiscal support, and sluggish productivity growth. Projections indicate a moderation in global headline inflation, with averages declining from 6.8% in 2023 to 5.9% in 2024 and further to 4.5% in 2025. This decline is primarily driven by advanced economies, where inflation is anticipated to return to pre-pandemic levels sooner compared to emerging markets and developing economies.

Advanced economies are poised for a slight uptick, primarily fueled by the euro areas recovery, with growth rates projected to rise from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025. In contrast, emerging markets and developing economies are expected to maintain stable growth at 4.2% during 2024 and 2025, although regional disparities exist, with growth moderation in Asia offset by growth in the Middle East, Central Asia, and sub-Saharan Africa.

Outlook

The global economic landscape is navigating a delicate balance of risks, with persistent uncertainties casting a shadow. Geopolitical tensions, exemplified by conflicts in Ukraine and Gaza, loom large, threatening price spikes that could amplify expectations for interest rates and undermine asset values. Meanwhile, divergent rates of disinflation among major economies may trigger currency fluctuations, impacting financial sectors. The intersection of elevated interest rates, household debt burdens, and adjustments in fixed-rate mortgages could strain financial stability further.

Amidst these challenges, central banks worldwide play a pivotal role as the global economy seeks a soft landing, necessitating vigilant management of inflation. Moreover, a renewed emphasis on medium-term fiscal consolidation is imperative to rebuild fiscal space for critical investments and ensure debt sustainability. Tailored policy responses, alongside reforms aimed at bolstering supply, are indispensable for addressing inflationary pressures, reducing debt burdens, fostering higher growth rates, and narrowing income disparities.

Furthermore, fostering multilateral cooperation is paramount for addressing complex challenges such as geo-economic fragmentation, climate change, and debt restructuring. Such collaboration holds the key to fostering a sustainable and inclusive economic recovery, promising a brighter future for all.

Global Economic Growth (in %)

	Estimate	Year-on-Year	Projections
	2023	2024	2025
World	3.2%	3.2%	3.2%
Advanced Economies	1.6%	1.7%	1.8%
Emerging Market and Developing Economies	4.3%	4.2%	4.2%

Indian economy

In India, the prevailing economic sentiment is marked by a cautious yet optimistic outlook. This positive trajectory is bolstered by robust policy interventions and a steady resurgence of the public and private sectors. The Indian economy maintains its upward trajectory despite global economic uncertainties. Projected to grow at 7.6% in financial year 2023-24, this marks the third consecutive year of over 7% growth, outpacing the global average. (Source: pib.gov.in)

Key drivers of Indias GDP growth include increased public sector investment in infrastructure, a resilient financial sector, rising consumer demand, vibrant manufacturing and industrial activity, strong agricultural performance, favourable government policies, global trade opportunities, and technological innovations fostering productivity.

Initiatives such as the Skill India Mission, Start-Up India, and Stand-Up India have further spurred human capital development, including greater female participation, contributing to the nations economic resilience and growth.

The governments economic policy agenda has been centred on revitalising Indias growth potential. This involves reinvigorating the financial sector, streamlining business conditions to spur economic activity, and significantly enhancing both physical and digital infrastructure to bolster connectivity and thereby boost the competitiveness of the manufacturing sector. Guided by this vision, the government has implemented a range of economic reforms aimed at fostering a business-friendly environment, enhancing ease of living, and fortifying governance systems and processes.

Interim Budgets Impact on Indias Power and Infrastructure

The interim budget lays down the blueprint for inclusive and prosperous India. Marching towards the vision of Viksit Bharat, the government has announced multiple policy reforms in particular for the infrastructure sector which has received an allocation of 11.11 lakh crore (representing 3.4% of the GDP) with major outlay for roads 2.72 lakh crore and railways 2.52 lakh crore.

The 2024-25 interim budget highlights key allocations and initiatives in the power sector, signalling the governments commitment to sustainable energy and innovation. Heres a breakdown of the key points:

• Budget Allocation: The Ministry of Power has been allocated 20,502 crore, slightly lower than the previous year. State-owned power companies plan to invest 67,286 crore, with significant contributions from power sector PSUs.

• Renewable Energy Focus: The Ministry of New and Renewable Energy (MNRE) sees a substantial increase in allocation to 12,850 crore, reflecting the governments emphasis on renewable energy sources. The Department of Atomic Energys allocation decreases slightly, while MNREs budget sees a significant boost.

• Programme Revisions: Several programmes witness cost revisions, with increased allocations for on-grid solar power, the National Green Hydrogen Mission, and others. However, allocations for on-grid wind power and the Faster Adoption and Manufacturing of Electric Vehicles (FAME) India programme decrease.

• Rooftop Solar Initiative: The budget proposes solarising 1 crore households, offering 300 units of free electricity per month.

This initiative is expected to support around 30 GW of rooftop solar capacity and aligns with the Pradhan Mantri Suryodaya Yojana.

• Offshore Wind Projects: Viability Gap Funding (VGF) is approved for offshore wind projects, aiming to maximise offshore wind energy potential and support Indias objectives for non-fossil fuel energy.

• Electric Vehicle (EV) Ecosystem: The budget allocates 2,671 crore under the FAME India scheme to enhance EV manufacturing and charging infrastructure. Emphasis is on increasing adoption of electric buses, promoting sustainable urban mobility.

• Research and Development Corpus: A corpus of 1 lakh crore with a 50-year interest-free loan aims to promote research and innovation in sunrise domains, encouraging significant private sector participation.

Way forward

Indias economic ambitions are poised for remarkable growth, with aspirations to reach a US$ 7 trillion economy by 2030. The nation is on track to achieve the significant milestone of a US$ 5 trillion economy within the next three years, positioning itself as the third-largest economy globally. Furthermore, India has set a bold target to transition into a developed nation by 2047. This journey towards economic prosperity is underpinned by steadfast momentum, driven by stable domestic demand, burgeoning private consumption, and increasing investments. Ongoing structural reforms continue to fuel this growth trajectory, fostering an environment conducive to innovation, entrepreneurship, and sustainable development. As India charts its path towards becoming a global economic powerhouse, it remains committed to fostering inclusive growth and prosperity for all its citizens.

Indian Power Sector

India, a major global economy, boasts a fully liberalised power market covering generation, transmission, distribution, and sale of electric energy. Its electric power industry is pivotal to the nations economy and stands out in power generation and consumption in the Asia-Pacific region. Fossil fuel-based generation, especially natural gas and coal, has historically dominated, fuelling the markets expansion nationwide.

According to data from the Ministry of Power, as of October 2023, fossil fuels dominated the electricity generation landscape, constituting over 56% of the total electricity produced in India. Of this, natural gas contributed approximately 6%, lignite 1.6%, diesel around 0.1%, and coal accounted for nearly 49%. In contrast, renewable energy sources comprised about 41.4%, with hydro contributing 11.2%, wind 10.3%, solar 16.1%, small hydropower 1.2%, and other sources making up 2.6%. Despite the rapid growth in renewables, fossil fuels, especially coal-fired plants, are poised to maintain their dominance in the near future, significantly impacting the trajectory of the Indian power market.

Indias power sector is undergoing a swift transformation, spurred by factors such as population growth, escalating energy demands, and the burgeoning industrial sector. Over the past decade, there has been a notable shift in Indias electricity generation mix towards natural gas and renewable energy sources.

Recognising the imperative for sustainable energy solutions, the Indian Government is actively prioritising the adoption of renewable sources to fulfill its energy requirements. With an ambitious target to derive 40% of its energy from non-fossil fuel sources by 2030, India is undergoing a significant transition in its power sector.

The emphasis on embracing renewable energy sources is evident through the implementation of various measures by the Indian Government. Ambitious targets have been set, particularly for the adoption of green energy, with a strong focus on solar and wind power. Initiatives like the Ujwal Discom Assurance Yojana (UDAY) scheme have been introduced to bolster the financial viability of distribution companies, curtail technical and commercial losses, and reduce the overall cost of power.

Furthermore, concerted efforts have been made to enhance electricity access in rural areas, incentivise renewable energy projects through subsidies, and establish the National Smart Grid Mission aimed at modernising the electricity grid infrastructure. These initiatives collectively underscore Indias commitment to transitioning towards a more sustainable and environmentally friendly energy landscape.

Growth drivers

India is the third-largest producer and consumer of electricity worldwide. The demand and supply of power is growing to support progress and prosperity.

Increasing Demand: Indias power market is witnessing growing demand due to population growth, urbanisation, and industrialisation. As more households and industries require electricity, the need for power generation capacity rises.

Investments in Capacity Augmentation: Significant investments are being made to enhance power generation capacity. New power plants, both conventional (thermal and hydro) and renewable (solar, wind, and others), are being set up to meet the rising energy needs.

Focus on Clean Energy Transition:

Indias commitment to cleaner energy aligns with global environmental goals. The shift toward renewables reduces carbon emissions and ensures long-term sustainability.

Transmission and Distribution Upgradation: Modernising transmission and distribution networks ensures efficient power delivery. Investments in grid infrastructure enhance reliability and reduce losses.

Government Policies and Reforms:

Supportive policies, such as the UDAY, encourage financial viability of distribution companies. Structural reforms promote efficiency and transparency. Moreover, schemes such as Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS) are expected to augment electrification nationwide.

Our role

Decentralisation, decarbonisation, and digitalisation are the top priorities of the Power sector. Alongside Schneiders robust energy management solutions, leveraging our EcoStruxureTM platform for Power and Grid, electric utilities can transition towards greener power generation, establish smart grids, and offer both efficient and sustainable energy solutions.

Indian Power Generation

As power demand rises, efficient generation becomes crucial for reliable and environmentally responsible energy systems. Despite challenges like fluctuating demand and disruptions, maintaining consistent supply, cost reduction, and safety standards are imperative. Yet, opportunities for growth persist.

India has significantly enhanced its power generation capacity, with a remarkable 70% increase from 2014 to 2023. Shifting from deficit to surplus, the nation added 97,501.2 MW in conventional power and 96,282.9 MW in renewable energy over a decade. By October 2023, Indias generation capacity reached 425,536 MW, a substantial rise from 248,554 MW in March 2014. The narrowing gap between energy supply and demand reflects Indias efforts in strengthening its power infrastructure, reducing from 4.2% in fiscal year 2013-14 to 0.3% in 2023-24. Challenges persist, particularly in state transmission and distribution networks, and financial constraints faced by distribution companies (DISCOMs). Nonetheless, Indias power demand continues to grow, driven by rapid economic expansion and increased electricity access to 2.86 crore households.

Anticipating the surge in power demand, the Ministry of Power has meticulously laid out a comprehensive plan to meet future requirements. This strategic blueprint encompasses an array of projects under construction, including 27,180 MW of thermal capacity, 18,033.5 MW of hydro capacity, 8,000 MW of nuclear capacity, and a substantial 78,935 MW of renewable energy capacity. By the envisioned timeline of 2031-32, India aims to augment its total capacity to an impressive 464,124 MW, ensuring readiness to cater to the burgeoning energy needs of the nation.

Aligned with its steadfast commitment to augment non-fossil fuel-based electricity generation, India is embarking on a phased transmission plan to seamlessly integrate renewable energy sources into its power grid.

Pioneering initiatives include the establishment of ultra mega renewable energy parks and the development of green energy corridors, with 13 renewable energy management centres already operational across the nation.

Indian Power Transmission and Distribution

India has demonstrated remarkable progress in fortifying its transmission infrastructure, evident in the expansion from 2,91,336 circuit kilometers in fiscal year 2013-14 to an impressive 4,76,547 circuit kilometers by fiscal year 2023-24 (up to October 2023). This substantial growth has greatly facilitated the seamless transfer of power across the nation, thereby significantly enhancing Indias capacity to meet the escalating energy demands of its populace.

During 2014 to 2023, the strides in distribution system enhancement are equally noteworthy, with the implementation of projects totaling 1.85 lakh crore under various government initiatives. These endeavours have resulted in the establishment of 2,927 substations and the incorporation of 8.86 lakh circuit kilometers of HT/LT lines. As a result, rural areas now benefit from increased power availability, rising from 12 hours in 2015 to a commendable 20.6 hours in 2023, while urban areas enjoy a robust 23.6 hours of power accessibility.

The Government of Indias commitment to green energy is evident through its comprehensive initiatives. With a substantial budget allocation, the Revamped Distribution Sector Scheme (RDSS) is geared towards reducing Aggregate Technical & Commercial (AT&C) losses and bridging the gap between the Average Cost of Supply and Average Revenue Realised by 2024-25. Emphasising financial support for prepaid smart metering, distribution infrastructure upgrades, and capacity building, among other activities, the scheme underscores Indias resolve towards sustainable energy practices.

Efficient metering, billing, and collection activities are pivotal for the profitability of distribution companies (DISCOMS). While there has been gradual improvement in billing and collection efficiency, AT&C losses in the country still remain high compared to global standards, with notable performance disparities between states. In a bid to enhance efficiency further, the government is contemplating proposed legislation that includes structural modifications to enable multiple distribution companies to operate within a given territory, empowering consumers to choose their electricity supplier. This legislative endeavour reflects Indias commitment to fostering a competitive and consumer-centric electricity market, thereby advancing its energy sector towards greater resilience and sustainability.

Our role

Our EcoStruxureTM Power platform digitises and streamlines electrical distribution systems. Through cyber-resilient, connected power distribution solutions, facility operations teams gain actionable insights to take informed decisions, ensuring the protection of people, assets, business continuity and performance.

Indias clean energy transition

Energy transition stands as a critical imperative in combating the looming threats of climate change and environmental degradation. The diminishing carbon budget, projected to exhaust by 2029 to maintain a 50% likelihood of remaining under 1.5?C, underscores the urgency for scaled-up efforts on a global scale.

Indias journey through the energy transition has been nothing short of remarkable. Spearheading with ambitious targets ahead of its peers, the nation has laid out comprehensive pathways supported by enabling policies, schemes, and initiatives. MNRE has set a bold target of achieving 500 GW of installed electricity capacity from non-fossil sources by 2030, positioning India as the fourth-largest renewable energy producer globally.

In line with this vision, India has recorded significant strides in renewable energy capacity, with 18.48 GW added in the fiscal year 2023-24 alone. Initiatives like the National Green Hydrogen Mission exemplify Indias commitment to green energy, aiming for 10% hydrogen blending in the existing natural gas pipeline network by 2030. However, challenges such as high costs and limited infrastructure necessitate concerted efforts for widespread adoption.

The Green Energy Corridor (GEC) projects further bolster Indias clean energy transition by facilitating the integration of renewable power and strengthening energy infrastructure. The deployment of renewable energy, coupled with energy efficiency measures and stringent environmental norms, forms the cornerstone of the electricity sectors transition.

Technological innovations, including energy storage solutions, hold the key to addressing the intermittency of renewable energy sources. Initiatives like the Perform Achieve and Trade (PAT) scheme and corporate net-zero targets complement state-led efforts towards decarbonisation. Additionally, initiatives in electric mobility, cooking, and agricultural sectors signify a holistic approach to energy transition.

Looking ahead, Indias focus remains on identifying optimal technological solutions to meet future energy demands sustainably. Initiatives like the National Green Hydrogen Mission and the exploration of critical minerals align with Indias vision of self-reliance in the clean energy sector. Emphasis on diverse renewable energy sources, expansion of incentive schemes, and acceleration of rooftop solar initiatives exemplify Indias commitment to accelerating its energy transition journey.

DISCOM Reforms

In June 2023, the Ministry of Power (MoP), in collaboration with the CEA, issued guidelines for the resource adequacy planning framework for India. These guidelines are formulated to ensure the availability of sufficient electricity by enabling discoms to procure resources in advance, thus meeting electricity demand in a cost-effective manner. The guidelines recommend that discoms secure at least 75-80% of the total capacity required through long-term contracts, with medium-term contracts suggested for 10-20%. Short-term contracts can then fulfill the remaining power demand.

Under the Revamped Distribution Sector Scheme (RDSS), financial support is extended to eligible discoms for deploying prepaid smart meters for 2.5 crore consumers, along with system metering featuring communication capabilities by March 2025. Furthermore, a framework for promoting advanced technologies in the power distribution sector has been endorsed under the RDSS. This involves leveraging technology solution providers to test and scale up use cases at discoms, along with establishing power distribution-focused incubators to drive continuous innovation. Advanced information and communication technologies such as artificial intelligence and machine learning will be utilised to analyze data from smart meters, aiding in theft detection and informed decision-making for loss reduction. Smart meters, alongside envisioned information technology-operational technology integration, are expected to enhance the operational and financial performance of the sector.

Our role

SEIL offers solutions that improve grid performance and efficiency, supports the integration of renewables into the national grid. Through EcoStruxureTM for Power and Grid, electric utilities can transition to greener power generation, develop smart grids, and deliver profitable yet affordable energy. This commitment to modernising and digitising existing infrastructure highlights our dedication to promoting sustainable development.

SEIL plays a pivotal role in aiding power Distribution Companies (DISCOMs) in achieving financial robustness by providing a suite of energy management and automation solutions. These tailored solutions enable DISCOMs to curtail operating expenses, enhance operational efficiency, and augment revenue streams through streamlined energy management practices. Additionally, SEILs offerings empower DISCOMs to optimise their distribution networks, thereby mitigating distribution losses and significantly bolstering their financial viability.

Indias Infrastructure sector

Indias path to becoming a developed nation by 2047 relies heavily on enhancing its infrastructure, a pivotal element for nurturing liveable, climate-resilient, and inclusive cities that propel economic growth. The governments dedication is apparent through its allocation of 3.3% of GDP to the infrastructure sector in fiscal year 2023-24, with a specific emphasis on transport and logistics.

Roads & Highways claim the largest share, followed by Railways and Urban Public Transport. The government has set ambitious targets for the transport sector, aiming to develop a 2-lakh-km national highway network by 2025 and expand airports to 220. Additionally, plans include operationalising 23 waterways by 2030 and establishing 35 Multi-Modal Logistics Parks (MMLPs).

The total budget for infrastructure-related ministries surged from around

3.7 lakh crore in fiscal year 2022-23 to 5 lakh crore in fiscal year 2023-24, presenting investment opportunities for the private sector across various transport segments. As the transport sector prepares to tackle sustainability challenges, the private sector is poised to leverage the favourable policy environment to accelerate infrastructure investments. Public-Private Partnerships (PPPs) have been crucial in engaging the private sector in various infrastructure projects, particularly in constructing airports, ports, highways, and logistics parks nationwide. In addition to support from the central government and states through various schemes, India requires a significant push from PPPs to achieve its goal of attaining a US$ 5 trillion economy by 2025.

Private sector involvement is crucial for financing key infrastructure projects in India, given the governments fiscal constraints and the imperative for prudent spending. India launched the National Infrastructure Pipeline (NIP) in 2020, envisioning an investment of 111 lakh crore over 2020 to 2025, translating to an annual average investment of almost 22 lakh crore. PPPs have been recognised as a valuable tool to expedite infrastructure development and investments outlined in the NIP. Engaging the private sector fosters industry competitiveness, facilitates access to a broader talent pool, and enhances resource utilisation. Several PPP projects are currently in the pipeline across sectors, including the development of Pune metro line 3, Hyderabad and Bengaluru metro extensions, and the establishment of a multimodal logistics park in Chennai.

It is imperative for India to prioritise the development of both urban and rural areas to ensure comprehensive national progress. By 2030, it is projected that 40% of Indias population will reside in urban areas, making a significant contribution to the countrys GDP. However, rapid urbanisation presents challenges in managing infrastructure and delivering services effectively. The Smart Cities Mission is a pivotal initiative aimed at addressing these challenges efficiently. As of February 2024, 6,753 projects out of a total of 7,991 have been completed under the Smart Cities Mission, demonstrating tangible progress.

Furthermore, India has made significant advancements in digital infrastructure development, with rural areas expected to contribute significantly to new internet user growth. Around 56% of total new internet users are projected to come from rural India by 2025, according to a report by TransUnion CIBIL. This trend highlights the increasing connectivity between rural and urban regions in the country.

Moreover, tunnel construction has become crucial for Indias infrastructure development, witnessing significant growth in recent years. This surge is driven by advancements in key sectors like urban rail, roads, hydropower, and water management. Initiatives such as the Pradhan Mantri Krishi Sinchayee Yojana and the Interlinking of Rivers Programme have spurred tunnel construction for irrigation and water supply. Additionally, metro rail expansion and road tunnels, particularly in hilly areas, are increasing. The future looks promising, with numerous projects in the pipeline, offering opportunities for contractors, consultants, and technology providers. Government initiatives like the Gati Shakti Master Plan are set to further boost infrastructure and drive tunnelling sector growth.

Source: https://www.investindia. gov.in/team-india-blogs/ indias-push-infrastructure-development#:~:text=The%20 governments%20commitment%20 is%20evident,Railways%20and%20 Urban%20Public%20Transport.

Indian mining, metals and minerals sector

Indias Mining, Metals, and Minerals (MMM) sector stands as a promising avenue for investment and expansion in the foreseeable future, yet it grapples with challenges that demand sustainable solutions. Integral to Indias economic prosperity, this sector plays a pivotal role in the extraction of diverse metals and minerals like iron ore, coal, copper, zinc, lead, and gold.

As one of the worlds leading iron ore producers, India benefits from surging domestic demand and soaring global commodity prices. Additionally, as a major coal producer, it fuels both power generation and steel production. The government has embarked on various policy endeavours to stimulate sectoral growth, including initiatives to augment domestic production, incentivise exploration and research, and attract foreign investment.

However, environmental considerations, land acquisition hurdles, and regulatory complexities have posed significant challenges. Addressing these issues is paramount for ensuring the sectors sustainable development and its continued contribution to Indias economic advancement on both domestic and global fronts.

Indian oil and gas sector

Indias energy landscape has long relied on imports, particularly in the form of oil and gas, constituting a substantial portion of the nations energy mix. However, recent years have seen India actively striving to diminish this dependency on fossil fuels and pivot towards more sustainable and environmentally friendly alternatives.

To realise this objective, India has intensified efforts to augment the presence of biodiesel, hydrogen fuel, and natural gas within its energy portfolio. A pivotal strategy involves bolstering biodiesel production through a targeted increase in ethanol blending in petrol, aiming to elevate the blend from the current 10% to 20% by 2025. This initiative not only curtails the consumption of conventional fossil fuels but also nurtures the growth of the burgeoning biofuel industry within the country.

Moreover, the government has articulated an ambitious vision to transmute India into a gas-centric economy by augmenting the share of natural gas in the energy spectrum to 15% by 2030. This transition not only mitigates carbon emissions but also furnishes a cleaner and more sustainable energy alternative.

In line with fostering clean energy adoption, the Union Cabinet endorsed the National Green Hydrogen Mission in January 2022. This pioneering mission aspires to position India as a foremost producer and supplier of Green Hydrogen globally. By catalysing the advancement of Green Hydrogen technology, India aims to unlock export avenues and contribute significantly to the global endeavour of combating climate change.

Complementing these endeavours, India is making substantial investments in renewable energy sources to fortify its energy security and diminish its carbon footprint. With an ambitious target to escalate the share of renewable energy in its energy mix to 40% by 2030, the nation envisages substantial expansion in solar, wind, hydroelectric, and other renewable energy projects nationwide.

Indian Mobility Sector

Sustainability has swept through the automobile industry, with a remarkable surge in zero carbon emissions and carbon-neutral manufacturing practices, driving sustainability within the automotive sector. This surge is fueled by heightened public awareness of environmental and sustainability concerns. Consequently, car manufacturers are compelled to reassess and revamp both their products and supply chains to integrate sustainability into the automotive industry. Achieving widespread sustainability in the automobile sector necessitates innovative solutions that render the product manufacturing process carbon-neutral and environmentally sustainable.

Over the past decade, Indias mobility sector has undergone remarkable growth, driven by the rapid expansion of urbanisation and the burgeoning middle class, which has escalated the demand for transportation services.

This sector encompasses various modes of transportation, including cars, motorcycles, buses, trains, and flights.

Continuously evolving, the mobility sector in India is striving to enhance transportation efficiency, sustainability, and safety for commuters. The Indian Governments advocacy for sustainable and electric mobility has significantly influenced the sectors trajectory. The launch of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme in 2013 aimed to incentivise the adoption of electric vehicles (EVs) across the country. Subsequently, the scheme has undergone multiple extensions, with the current operation being the second phase.

The emergence of ride-hailing platforms like Ola and Uber has further propelled the sectors expansion. The convenience offered by these services has reduced reliance on individually owned vehicles, consequently alleviating road congestion. Despite its growth, the industry grapples with various challenges, including inadequate infrastructure, safety apprehensions, limited public transport options in smaller cities and towns, and soaring fuel prices.

Indias Electric Vehicle (EV) Infrastructure

Indias Electric Vehicle (EV) infrastructure is undergoing rapid development to accommodate the increasing adoption of electric vehicles nationwide. The expansion of charging infrastructure networks, encompassing both public and private charging stations, is a significant focus. Initiatives like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme provide incentives for setting up charging stations, encouraging investments in EV infrastructure.

Moreover, the Indian government offers various incentives and subsidies to promote EV manufacturing and adoption, including tax benefits, reduced GST rates, and subsidies for both buyers and manufacturers. Complementary policies and regulations, such as the National Electric Mobility Mission Plan (NEMMP), are aimed at accelerating EV adoption across the country.

Public-private partnerships are emerging as a driving force behind the development of EV infrastructure. Collaboration between government bodies, automobile manufacturers, and technology companies is essential for building a robust EV ecosystem.

Technological advancements in battery technology and charging infrastructure are also shaping Indias EV landscape. Innovations like fast-charging solutions, swappable battery technologies, and smart grid integration are enhancing the efficiency and usability of electric vehicles.

Overall, Indias EV infrastructure is rapidly evolving, laying the groundwork for a sustainable and eco-friendly transportation system. Continued investments, supportive policies, and collaborative efforts are essential for further advancing EV infrastructure development nationwide.

With vehicle electrification on the brink of unprecedented growth, the demand for EV batteries is soaring. We believe that adopting a digitalised, connected approach to battery manufacturing and process optimisation could hold the key to unlocking next-level gigafactory performance.

Our role

The burgeoning EV infrastructure in India offers SEIL a lucrative business opportunity. With the rising adoption of electric vehicles, theres a growing demand for EV charging infrastructure. Leveraging its expertise in energy management and automation, SEIL can deliver innovative solutions tailored for EV charging infrastructure needs.

Digitalisation empowers fabs to achieve peak performance and enhance time-to-market efficiency effectively.

Indian railway infrastructure

Railways stands out as one of the most efficient and cost-effective modes of transport globally, capable of ferrying large numbers of passengers and cargo swiftly over vast distances. Moreover, it boasts the distinction of being the most environmentally friendly land transport option, with significantly lower energy consumption and carbon dioxide emissions compared to roadways or waterways.

In India, the railway sector has witnessed numerous advancements over the past decade, including the expansion of the metro rail network, the introduction of high-speed trains, and the modernisation of railway stations. Over the next four to five years, Indian Railways has set ambitious targets for network expansion and decongestion. Plans include the construction of 17,000 track km of new lines, doubling, and gauge conversion work by 2024, with significant progress already achieved in 2023.

As part of the countrys strategy to combat climate change, Indian Railways aims to become a net zero carbon emitter by 2030, intending to source 1,000 MW of solar power and 200 MW of wind power across zonal railways and production units.

The Indian Government has made substantial investments in upgrading and expanding the existing rail network and constructing new rail corridors to connect various parts of the country. Notable developments include the introduction of the Vande Bharat Express, the countrys fastest train, and the implementation of modern amenities such as Wi-Fi, audio-visual entertainment, and improved catering services on popular routes.

Efforts also extend to deploying high-speed, state-of-the-art trains, exemplified by the bullet train project between Mumbai and Ahmedabad, aimed at providing swift and efficient transportation nationwide. Additionally, the governments focus on electrifying rail tracks aims to reduce carbon emissions, enhance air quality, and lower costs.

By adopting smart grids, automation, and monitoring solutions, Indian Railways can significantly diminish its energy consumption, amplify efficiency, bolster reliability, and effectively pursue its sustainability objectives.

Our role

SEIL offers energy management, power management solutions, asset monitoring, and automation solutions to optimise performance.

Indian Airport Infrastructure

Indias airport network spans both domestic and international terminals and has seen substantial investments in recent years to modernise and expand in response to increasing air travel demand.

India has ascended to become the worlds third-largest domestic aviation market and is poised to surpass the UK to claim the third-largest passenger market by 2024.

The Indian aviation infrastructure market is forecasted for significant growth, propelled by the expansion of aviation operations and increased investments in commercial aircraft acquisitions by various airlines. This growth is largely fueled by the substantial rise in air traffic passengers within the country in recent times.

The terminal segment is expected to experience notable growth in the Indian aviation infrastructure market. With a surge in airport terminal construction projects aimed at meeting future aviation industry demands, the market is set to witness significant expansion in the near future.

Our role

With EcoStruxureTM for smart airports, we assist in digitising infrastructure to ensure continuous operations, optimise costs, enhance sustainability, and elevate the traveller experience. Our solutions enable seamless operations both now and, in the future, facilitating the transformation of airports into intelligent hubs of connectivity and efficiency.

Company Overview

SEIL is an integral part of the Schneider Electric Group (Schneider Electric/Group), a renowned multinational corporation specialising in energy management and automation solutions. The Group commenced its operations in India in 1963 and has since established itself as a leading provider of energy management solutions, industrial automation products, and software solutions.

SEIL and the Path to Energy Efficiency

1. Energy-Efficient Solutions: SEIL provides a range of energy-efficient products and services aimed at helping businesses reduce energy consumption and costs.

2. Energy Audits: The Company offers energy audit services, employing expert teams to evaluate energy consumption patterns and identify areas for optimisation.

3. Energy Monitoring and Management: SEIL delivers energy monitoring and management solutions, enabling businesses to track energy usage and costs in real-time, facilitating the identification of inefficiencies and process adjustments.

4. Renewable Energy Solutions:

Through renewable energy solutions, SEIL assists businesses in transitioning to clean energy sources such as solar or wind power, with a notable increase in energy consumption from renewable sources.

5. Education and Awareness Campaigns: SEIL conducts education and awareness campaigns to promote energy efficiency among businesses and individuals. Training programmes covering zero carbon & sustainability and decent work programmes have been

SEILs unique business model

SEILs comprehensive portfolio includes energy-efficient equipment, electrical distribution systems, and advanced software applications for energy management. Beyond product offerings, the Company invests in training and development programmes to empower customers and partners in energy management and automation. SEILs commitment extends to pioneering sustainable solutions, reducing carbon footprints, and promoting environmental responsibility.

In the realm of disruptive digitalisation, SEIL excels as a provider of transformational solutions across various industries.

SEILs dedication to driving digital transformation empowers businesses to achieve heightened performance, sustainability, and competitiveness in their respective domains.

conducted, covering a significant portion of the value chain partners

SEIL, a prominent player in Indias industrial landscape, boasts robust manufacturing facilities, research hubs, and an extensive network of partners and distributors. The Company actively engages in smart city initiatives and digital solutions, emphasising innovation, sustainability, and digital transformation. Positioned as a trusted ally for organisations seeking operational optimisation and carbon neutrality, SEILs unique business model revolves around energy management and automation solutions.

Strategic pillars for SEIL

Driving digital and sustainability transformation for customers

Were committed to continuously expanding our digital equipment, automation, and digital services offerings to enhance efficiency and sustainability for our customers, accelerating their journey towards net zero aspirations. Additionally, were spearheading SF6-free initiatives to champion environmental sustainability and establish thought leadership in the industry, paving the way for a cleaner and greener tomorrow.

Building and empowering local competencies

Aligned with the governments Make in India initiative aimed at transforming the nation into a global manufacturing hub, we are fostering synergies to develop efficient and innovative local solutions. This includes empowering partner network comprising organisations with complementary business models, facilitating collaborative efforts to drive growth and success in the local manufacturing ecosystem.

Leveraging opportunities in the new energy landscape

We are establishing a formidable presence in booming and future-focused sectors such as data centres, EV infrastructure, and the semiconductor industry, positioning ourselves at the forefront of technological advancement and innovation. Additionally, we are actively supporting the energy management demands of renewable customers, with a particular focus on solar and wind energy, contributing to the global transition towards sustainable and eco-friendly energy sources.

Effective life cycle management of assets

We have a robust portfolio of digital and recurring services tailored for asset management, ensuring streamlined operations and optimised performance. Additionally, we create opportunities for modernisation and upgrades, empowering businesses to stay ahead of evolving technological trends and enhance their capabilities for sustained growth and success.

Fostering a unique culture with empowered teams

We actively promote diversity and women in leadership roles, fostering an inclusive environment that values different perspectives and experiences. Additionally, we empower early-career professionals by providing mentorship and growth opportunities. Our emphasis on upskilling and continuous learning ensures that our team members stay abreast of the latest developments in their field, enabling them to thrive in an ever-evolving landscape.

SEILs response to current market trends

SEIL, as a technology-driven enterprise, is at the forefront of addressing prevailing market trends in the energy industry. With a focus on energy management and automation, the company strategically responds to key trends such as renewable energy, sustainability, energy efficiency, and digitalisation.

To align with these trends, SEIL channels substantial investments into research and development, fostering innovation in its product offerings. By leveraging cutting-edge technologies, SEIL develops pioneering solutions that enable customers to transition towards carbon neutrality, enhance energy efficiency, and integrate renewable energy sources into their energy portfolios.

In particular, SEIL plays a pivotal role in the renewable energy sector by providing comprehensive solutions and services that facilitate the adoption of cleaner, sustainable, and more efficient technologies. Through its offerings, SEIL empowers businesses to embrace environmentally friendly practices while optimising their energy usage and contributing to a greener future.

Financial overview

SEILs financial overview for financial year 2023-24 saw a strong performance as the Company reported a revenue of 2,206.7 crore, marking a growth of 24.2% from the previous year. The increasing adoption of intelligent and energy-efficient solutions across various industries fueled this growth. The

Companys focus on cost optimisation and operational efficiencies significantly improved operating margins. SEIL also continued to invest in research and development, driving innovation in the energy management domain. As a result, the Company has established a solid base to continue its growth trajectory in the coming years.

Profit & Loss Summary	FY 2023-24	FY 2022-23	% Change
Revenues	2,206.7	1,777.2	24.2%
Operating EBITDA	305.0	179.9	69.5%
% of Revenue	13.8%	10.1%
Profit After Tax	172.0	123. 6	39.1%
% of Revenue	7.8%	6.9%
Company Debt	FY 2023-24	FY 2022-23	% Change
Long Term Debt	485.7	402.2
Short Term Debt	61.1	131.8
Gross Debt Level	546.8	533.9
Debt Equity Ratio	1.85	3.53	(47.8%)
Key Ratios	FY 2023-24	FY 2022-23	% Change
ROI	18.6%	11.8%	57.8%
ROCE	32.5%	21.8%	49.1%
ROE	76.9%	132.1%	(41.8%)

Outlook

The Companys positive business outlook is driven by several factors, including the growing demand for sustainable and energy-efficient solutions as organisations prioritise environmental and social responsibility. Firmly committed to sustainability and innovation, the Company remains competitive in the rapidly evolving energy market. One key growth driver for SEIL is the increasing adoption of renewable energy sources, such as solar and wind power, where the Company has a strong presence, offering various integration solutions. Another growth area is the digitalisation of energy management and automation. Leveraging expertise in IoT, analytics, and cloud computing, SEIL develops innovative solutions to optimise energy usage, reduce costs, and increase efficiency. With a skilled team and a focus on innovation, the Company is poised to lead the industry towards a cleaner, more sustainable future. Indias emergence as a significant market offers further growth potential for sustainable solutions. Moreover, with the Indian Governments initiatives to expand infrastructure and promote sustainability, the Company is well-placed to capitalise on new opportunities and its commitment to sustainability is likely to resonate with customers and stakeholders, enhancing its reputation and market position.