Schneider Electric to Set Up 5 Lakh Sq. Ft. Facility in Tamil Nadu

K N Mishra

    27/Jun/2025

What’s Covered Under the Article:

  • Schneider Electric will build a 5 lakh sq. ft. IT manufacturing facility in Tamil Nadu's Shoolagiri.

  • The two-phase project includes dust-free units, sustainable features, and modern infrastructure.

  • The plant will serve key markets like Bengaluru and Chennai, boosting green industrial growth.

Schneider Electric, a global leader in energy management and automation, is expanding its manufacturing footprint in India with a major new facility in Tamil Nadu, reinforcing the state's position as an industrial powerhouse. The company has announced plans to set up a 5,00,000 square feet (5 lakh sq. ft.) manufacturing plant dedicated to its Information Technology (IT) business at the Horizon Industrial Park near Shoolagiri.

This move underlines Schneider Electric’s confidence in India’s manufacturing and technology ecosystem and marks a key milestone in its strategy to serve both domestic and international markets more efficiently.


Two-Phase Development to Enhance Production and Customisation

The project will be executed in two phases in collaboration with Horizon Industrial Parks, a key industrial infrastructure player backed by Blackstone Real Estate funds.

  • Phase 1 includes the construction of a dust-free manufacturing unit, modern office space, and enhanced utility infrastructure. The initial set-up is expected to support 1,500 employees and will be equipped with high-capacity industrial power, cutting-edge fire safety systems, and seamless operational workflows.

  • Phase 2 will involve the creation of a tailor-made facility specifically aligned with Schneider Electric’s unique operational and logistical requirements. This second phase is projected to be completed within seven months, showcasing an accelerated execution timeline.

By expanding near Shoolagiri, located strategically between Bengaluru and Chennai, Schneider Electric gains access to a logistics corridor that ensures quick market reach, efficient supply chain integration, and availability of skilled manpower.


A Model of Sustainable Industrial Development

In line with its sustainability-first philosophy, Schneider Electric’s new facility will incorporate environmentally responsible features that set a benchmark for green industrial practices in India. The company is committed to creating a manufacturing space that aligns with global Environmental, Social, and Governance (ESG) goals and India’s green manufacturing ambitions.

Key sustainability features include:

  • Rooftop solar panels for renewable energy generation

  • Roof insulation with glass wool to reduce heat transfer

  • Skylights for increased use of natural lighting

  • Advanced ventilation systems for healthy indoor air quality

  • Smart lighting sensors to minimize energy waste

  • Electric vehicle (EV) charging stations to encourage clean transportation

  • Integrated Building Management System (BMS) for centralised energy control

The Horizon Industrial Park facility already holds a ‘Platinum’ pre-certification by the Indian Green Building Council (IGBC), ensuring that the infrastructure aligns with the highest environmental standards in India’s industrial construction space.


Boosting India’s Industrial Infrastructure Ecosystem

This announcement comes at a time when India is actively positioning itself as a global manufacturing hub, driven by initiatives like ‘Make in India’, PLI schemes, and state-led incentives for industrial growth. Tamil Nadu, with its industry-friendly policies, mature ecosystem, and strong logistics connectivity, continues to be a preferred destination for global majors like Schneider Electric.

Mr. Urvish Rambhia, Principal at Blackstone Real Estate, said the collaboration reinforces Blackstone's commitment to building world-class industrial infrastructure in India. He highlighted the company’s focus on delivering innovative, sustainable, and high-quality facilities for multinational enterprises looking to scale operations in the region.

Horizon Industrial Parks, the host location, manages 40 key assets across nine major Indian markets, covering 2,000 acres of land and boasting 50 million sq. ft. of leasable space. This massive footprint reflects India’s growing readiness to support high-tech manufacturing ecosystems.


Economic and Employment Impact

The Schneider Electric plant in Tamil Nadu is expected to bring multiple economic benefits:

  • Direct employment for over 1,500 workers in Phase 1

  • Indirect job creation across logistics, maintenance, and service sectors

  • Boost to local suppliers and contractors, especially in civil and electrical works

  • Skill development for engineers and technicians aligned with Schneider’s global standards

The facility is also anticipated to play a key role in ramping up India’s exports of high-end electrical and IT equipment, given Schneider’s vast global distribution network.


Strategic Importance in the Indian and Global Context

This expansion is part of Schneider Electric’s global strategy to decentralise and diversify manufacturing operations and reduce over-dependence on any single geography. India’s robust demand for electrical infrastructure, smart buildings, and industrial automation makes it a natural destination for Schneider’s forward-looking investments.

The location near Shoolagiri enhances its strategic value due to:

  • Proximity to Bengaluru, India’s IT and innovation capital

  • Easy access to Chennai Port, facilitating export and logistics

  • Integration with India’s growing national freight corridors

Moreover, this plant will serve as a benchmark facility, showcasing India’s capabilities in high-tech, energy-efficient manufacturing to Schneider’s global peers and partners.


Conclusion: A Step Forward for Green, Smart Manufacturing in India

Schneider Electric’s decision to invest in a 5 lakh sq. ft. state-of-the-art facility in Tamil Nadu demonstrates not only its trust in India’s manufacturing and industrial potential, but also its commitment to sustainability and innovation.

With the backing of Blackstone’s Horizon Industrial Parks, access to two major economic corridors, and a design philosophy rooted in green infrastructure, this facility is poised to be a flagship example of next-generation industrial development in India.

As India marches towards becoming a $5 trillion economy, strategic moves like this will continue to reshape its industrial landscape, generate sustainable employment, and promote clean, smart manufacturing ecosystems across the country.

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