Engineering and power sector-major Siemens Ltd is acquiring the New Delhi-based switchgear and power equipment major C&S Electric Limited for around Rs 2,100 crore (approximately EUR 267 million).
The acquisition comprises the Indian operations of C&S Electric's low-voltage switchgear components and panels, low and medium voltage power busbars as well as protection and metering devices businesses. Other businesses of the company such as medium voltage switchgear and package sub-station, lighting, diesel generating sets, EPC (Engineering, Procurement and Construction) and the Etacom busbars business will be retained by the owners. C&S, a company with more than 50 years of experience in India, reported revenues of Rs 1241 crore in the last financial 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 research and development centre.
Sources said Siemens will fund the entire acquisition with its cash. Siemens Limited had a cash balance of Rs 4,891 crore as of September 30, 2019.
Recently multinational Schneider Electric had acquired L&T's electric business for Rs 14,000 crore.
"Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses the needs of a very important market. Siemens is committed to significantly improving access to reliable and efficient power supply in India. This latest investment demonstrates our commitment to strengthening our offering in high growth markets in Asia," said Cedrik Neike, Member of the Managing Board of Siemens AG and CEO, Smart Infrastructure.
"The addition of C&S Electric's products, sales network, manufacturing units and a highly competent employee base will complement and strengthen the range of Siemens' offering. This will bolster our portfolio not only in India but also for export to competitive international markets in line with our growth strategy," said Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd.
Sources said C&S will continue to operate under its brand name and the combination of the portfolios of the two companies will enhance Siemens' position in the business, enabling it to better serve customers requiring electrification in areas such as construction, industry, data centres, smart campuses and other city infrastructure. In the future, Siemens plans this partnership to pave the way for the establishment of a design and manufacturing hub in India, supporting the export of electrification solutions to fast-developing markets around the world.