Siemens Ltd has signed a MoU with Babcock Borsig Ltd to acquire a 50-per cent stake in Flender Ltd. Siemens will purchase this equity stake from Babcock Borsig for Rs650 million (€12 million).
Flender Ltd is a joint venture between Flender AG and Babcock Borsig, with Babcock Borsig Ag and Williamson Magor group each holding 50-per cent equity stake in Babcock Borsig. Siemens' board had earlier approved the proposal to acquire a 50-per cent stake in Flender Ltd.
Earlier in August 2005, Siemens AG had globally acquired a majority stake in Flender AG. With this acquisition, Flender will now be a part of Siemens in India. Flender is one of the leaders in the industrial gearboxes segment with revenues of around Rs85.7 crore for the year ended September 30, 2005. Its current employee strength is around 325 and has a manufacturing facility at Kharagpur, West Bengal and caters to major market segments like cement, sugar, steel and rubber.
J Schubert, managing director, Siemens Ltd, said, "The acquisition of Flender is yet another step in our investment-led growth strategy. This new business will support our portfolio, especially in the drives and motors segments. Further as a part of our strategy, we will continue on the path of mergers and acquisitions that compliments our overall portfolio.