Business

Siemens to buy C&S Electric for₹2,100 crore

Bid to meet rising electrification needs

Siemens Ltd, the publicly-listed Indian arm of Siemens AG, has signed an agreement to acquire New Delhi-based C&S Electric Limited for ₹2,100 crore in a bid to meet the increasing demand for electrification across industry, infrastructure and buildings in India,

“The acquisition of one of the leading providers of electrical and electronic equipment for infrastructure, power generation, transmission and distribution, will strengthen Siemens’ position as a key supplier of low-voltage power distribution and electrical installation technology in one of the world’s fastest-growing economies,” said the company in a statement.

Under the agreement, Siemens Ltd. will acquire approximately 99% of the equity share capital of C&S Electric Limited for around €267 million (₹2,100 crore).

Cedrik Neike, member of the managing board, Siemens AG and CEO, Smart Infrastructure, said: “Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses the needs of a very important market. This latest investment demonstrates our commitment to strengthening our offering in high growth markets in Asia.” The scope of the acquisition comprises the Indian operations of C&S Electric’s low-voltage switchgear components and panels, low and medium voltage power busbars as well as protection and metering devices businesses.

Other businesses of the company such as medium voltage switchgear and package sub-station, lighting, diesel generating sets, EPC (engineering, procurement and construction) and the Eta-com busbars business will be retained by the owners.

Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd., said: “The addition of C&S Electric’s products, sales network, manufacturing units and a highly competent employee base will complement and strengthen the range of Siemens’ offering. This will bolster our portfolio not only in India, but also for export to competitive international markets in line with our growth strategy.”

In the future, Siemens envisions this partnership to pave the way for the establishment of a design and manufacturing hub in India, supporting the export of electrification solutions to fast-developing markets around the world.

C&S Electric has more than 50 years of experience in India and will continue to operate under its own brand name. The combination of the portfolios of the two companies will enhance Siemens position in the business, enabling it to better serve customers requiring electrification in areas including construction, industry, data centers, smart campuses and other city infrastructure.

R. N. Khanna, Founder and Chairman, C&S Electric, said: “Having been a leading participant in the Indian switchgear market since 1966, we are now extremely delighted to be part of the Siemens family, an organization that has pioneered and developed the switchgear market in India and globally for many decades.”

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Printable version | Feb 19, 2020 6:32:52 AM | https://www.thehindu.com/business/siemens-to-buy-cs-electric-for2100-crore/article30646507.ece

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