Siemens Ltd Approves Rs 22 Billion Sale of Low Voltage Motors Segment

Siemens Limited, a flagship technology firm in India, has given the green light to divest its low voltage motors and geared motors segment. The transaction, valued at an enterprise value of Rs 22 billion, transfers ownership to Siemens Large Drives India Pvt Ltd, a subsidiary of Siemens AG, effective from October 1, 2023. This move is part of Siemens AG’s larger plan to carve out and consolidate its low voltage motors and geared motors businesses globally into a standalone entity, Innomotics GmbH.

 

The divested business contributed about Rs 1,061 crore in revenue and Rs 132 crore in operating profit in FY 2022, representing roughly 7% of Siemens Limited’s revenue and 9% of its profit from operations. Siemens plans to distribute 100% of the sale proceeds as a special dividend to its shareholders after applicable taxes. This sale enables Siemens Limited to sharpen its focus on high-growth digitalization, automation, and e-mobility solutions, exemplified by its simultaneous acquisition of an EV charging division.

 

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Source: Siemens Ltd Board Release (BSE), The Hindu Business Line, Financial Express, Economic Times, Moneycontrol​