Siemens Ltd, in a release, has announced that its board of directors has approved the sale and transfer of its Large Drives Applications (LDA) business to Siemens Large Drives India Pvt Ltd.
Siemens Large Drives India Pvt Ltd is a subsidiary of Siemens Large Drives GmbH, which in turn is a subsidiary of Siemens AG.
The sale and transfer will take effect from July 1, 2022, and is subject to receipt of requisite statutory and regulatory approvals, as applicable.
The proposed transaction is consequent to the intent of Siemens AG to carve out the Large Drives Applications business globally into a separate legal entity
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The LDA business within Siemens Ltd recorded a revenue from operations of Rs.4,43.7 crore for FY21 and an operating profit of Rs.25.1 crore.
As of FY 2021, the LDA business contributed 3.4 per cent and 2.0 per cent respectively, to the total revenue from operations and profit from operations of Siemens Ltd.
Following a valuation done by an external independent valuer, the LDA business was approved for sale and transfer by the Board of Directors, for a consideration of Rs.440 crore.
Featured photograph courtesy: Siemens
