SIEMENS acquires C&S Electric for Rs 2,100 crore..

Another Big news after Schneider's acquisition of L&T...

Considering the growing Electrification needs in india,Engineering and power sector giants Siemens Signed an agreement with one of the leading providers of electrical and electronic equipment for infrastructure, power generation, C&S.This is going to improve Siemens’ position in the Low Voltage Switchgear market as a key player in this segment in one of the world’s fastest-growing economies.

 Under the agreement, Siemens Ltd. is going to acquire about 99 percent of the equity share capital of C&S Electric Limited around Rs.2,100 crore (approximately EUR 267 million). This acquisition deal will close after the regulatory approvals.

 This has cleared Siemens’ way to establish the design and manufacturing hub in india which will in turn support its aim to to provide solutions to the fast developing markets around the world.

This Acquisition includes C&S Electric’s low-voltage switchgear components and panels, low and medium voltage power busbars protection and metering device businesses. However the other businesses of the corporate like medium voltage switchgear and package sub-station, lighting, diesel generating sets, EPC (Engineering, Procurement and Construction) and of course the Etacom busbars business are going to be retained by the owners.

C&S, an organisation with quite 50 years of experience in India, reported revenues of Rs 1241 crore within the last fiscal year . C&S Electric was founded in 1966 by R.N. Khanna and employs about 5,000 people across three main manufacturing locations - Haridwar, Noida and Guwahati - including a search and development centre.

Sources said Siemens will fund the whole acquisition with its cash. It is said that Siemens Limited had fully utilized its cash balance of Rs 4,891 crore as of September 30, 2019 in this deal.It is interesting to note that recently multinational Schneider Electric also had acquired L&T's electric business for Rs 14,000 crore.

 This addition of C&S Electric's products,networks,manufacturing infrastructure and employees will strengthen the range of Siemens' business.

 This will bolster Siemens’ portfolio not only in India but also for export to competitive international markets in line with their growth strategy. Sources said C&S will still operate under its name and therefore the combination of the portfolios of the 2 companies will enhance Siemens' position within the business, enabling it to better serve customers requiring electrification in areas like construction, industry, data centres, smart campuses and other city infrastructure.

Photo courtsey : Simens News feed.