The board of Siemens Ltd on Tuesday approved a proposal to demerge its energy business into a separate entity — Siemens Energy India Ltd.
A wholly owned subsidiary of Siemens Ltd, Siemens Energy India will be listed and mirror the shareholding of Siemens Ltd, upon the receipt of requisite approvals.
The shareholders of Siemens Ltd will receive one share of Siemens Energy India Ltd for every share held.
According to Siemens, the demerger will lead to the creation of two strong and independent entities which can better address their respective markets and customers with a more focused approach.
Siemens Ltd said in a regulatory filing that it will continue to be a technology-focused company in industry, infrastructure and mobility.
Siemens Energy will provide solutions across the entire energy value chain ranging from power and heat generation to transmission and storage.
Its portfolio will include conventional and renewable energy technology such as gas & steam turbines, hybrid power plants operated with hydrogen as well as power generators and transformers.
Parent Siemens AG demerged the energy business globally in 2020 and in continuation of this strategy, its Indian arm is now hiving off the energy business into an independent firm.
``The nature and competition involved in the energy business are distinct from the other businesses within the demerged company. In order to foster the growth of the energy business, differentiated strategy aligned to industry-specific risks, market dynamics and focused approach is required,’’ Siemens said.
Siemens posted a nearly 74 per cent rise in March quarter profit after tax at ₹896 crore because of higher revenues. The company, which the follows October-September financial year, clocked a net profit of ₹516 crore in the year-ago quarter.
Revenue during the quarter stood at ₹5,248 crore, a 19 per cent increase over ₹4,400 crore in the same period of the previous fiscal.
Siemens MD and CEO Sunil Mathur said the second quarter showed robust growth in revenues built off a strong order backlog.
