Siemens Ltd has announced that its board has approved the sale and transfer of the company’s low-voltage motors business.
In a release, Siemens said that its board, in a meeting held on May 19, 2023, approved the sale and transfer of the company’s low voltage motors and geared motors businesses, inclusive of the respective customer service business to Siemens Large Drives India Pvt Ltd.
Siemens Large Drives India Pvt Ltd is a subsidiary of Innomotics GmbH (formerly known as Siemens Large Drives GmbH), which is in turn a subsidiary of Siemens AG. It may be noted that Siemens AG is the ultimate holding company of Siemens Ltd.
The sale and transfer will take effect from October 1, 2023, subject to necessary approvals, for a cash consideration of Rs.2,200 crore, subject to adjustment for the change in net current assets subsequent to 31st March 2023 up to the date of actual transfer of the said business.
According to a stock exchange filing by Siemens Ltd, the low voltage motors and geared motors businesses, including the respective customer service business, earned revenue from operations of Rs.1,061.30 crore during the financial year 2021-22. This represented nearly 7 percent of the comparable revenue of Siemens Ltd in that year.
Acquisition of EV business
In an independent development, Siemens Ltd also announced that it would be acquiring the electric vehicle (EV) division of Mass-Tech Controls Pvt Ltd (MCPL), for a cash consideration of around Rs.38 crore. During FY23, the EV division of MCPL recorded a turnover of Rs.16.742 crore. The acquisition is likely to complete by September 2023.
Discussing the rationale, Siemens Ltd said that with the acquisition, Siemens Ltd can address the fast-growing demand for EV charging infrastructure in India, expand its local market presence and enable the creation of an export hub. The acquisition will also help scale up Siemens Ltd’s range of e-mobility solutions, complementing Siemens’ global portfolio.
Headquartered in Mumbai, MCPL was incorporated in 1988 and its EV division was started in 2017. The EV division is engaged in the business of design, engineering, and manufacturing of a wide range of AC and 30 – 300kW capacity DC chargers for various end applications for electric vehicles.
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Featured photograph (source: Siemens) is for representation only
