Siemens is buying Indian electrical equipment maker C&S Electric in a 267 million euro ($296.21 million) deal, the German industrial group said.
The privately held New Delhi-based company makes low-voltage switchgear parts, metering devices and other products used to transmit and distribute electricity, Siemens said.
The C&S deal comes as Siemens reorganises itself around its smart infrastructure and industrial automation businesses when it spins off its energy business this year.
C&S, which employs 5,000 people, had estimated sales of around 150 million euros in 2019, with an operating profit margin of 10 per cent to 15 per cent, Siemens said.
Andreas Matthe, chief executive of the low-voltage products business at Siemens’s Smart Infrastructure division, said buying C&S would help Siemens provide products for the Indian low-voltage market, which has been growing at around 6 per cent per year.
Siemens wants to boost its presence in India’s home-building, construction and infrastructure sectors like airports, Matthe said.
“India is one of the fastest growing markets in the world, and there is so much to do in terms of infrastructure and improving the energy supply,” Matthe said.
Siemens will buy around 99 per cent of the equity share capital under the agreement, which is subject to regulatory approvals.
The trains to industrial software maker, which is due to report its first-quarter earnings on Feb. 5, said it was also looking to set up a design and manufacturing hub in India following the completion of the acquisition.
Source:http://bit.ly/3aNwjM2
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