The board of Siemens Ltd has approved additional investment in the company’s Kalwa transformer manufacturing facility in Maharashtra.
In a meeting held on November 26, 2024, the board of directors of Siemens Ltd approved additional investment of Rs.100 crore at the Kalwa plant, so as to enable expansion of product range to include large reactors.
In November 2023, the company had announced investment of Rs.360 crore at the Kalwa power transformer plant to expand manufacturing capacity from 15,000 MVA to 30,000 MVA, by December 2025.
The expansion plan is on track and is expected to complete by the scheduled date.
Siemens will finance the additional Rs.100 crore investment through internal accruals, similar to the original investment of Rs.360 crore.
The capacity expansion is aimed to cater to the global trend for energy transition and electrification, which has resulted in an increasing demand for Grid Technology products. This product portfolio would cater to the international market in various countries, based on demand, Siemens said.
Performance in FY24
During the quarter ending September 30, 2024, Siemens reported new order inflow of Rs.6164 crore, up 37 per cent from Rs.4,498 crore in the same quarter last year. (It may be noted that Siemens’ accounting year ends on September 30.)
During the year ending September 30, 2024 (FY24), excluding the large order of 9,000HP electric locomotives received in FY23, new orders rose by 14 per cent year-on-year.
Growing opportunities
Commenting on the company’s performance in Q4FY24, Sunil Mathur, MD & CEO, Siemens Ltd, said, “We continued to gain market share from a healthy demand across all our businesses with increasing interest in Siemens Xcelerator, our digital platform. With a pick-up in private sector capex and the Government’s ongoing focus on capex in infrastructure, we believe we are well positioned to meet the growing opportunities in the market. We are currently focused on completing the announced demerger of the Energy business which will unlock value for our shareholders.”
Also Read: Power T&D and renewables are growth areas, notes Siemens MD & CEO
Featured photograph is a file picture of Siemens’ transformer manufacturing plant at Kalwa in Maharashtra.
