Siemens pushing Rs200 crore India plans despite the slump

25 November 2008

Siemens Ltd will carry on with its proposed Rs200 crore investment plans in India despite the current slowdown, its managing director Armin Bruck said at the company's annual general general meeting today.

For the year ended September 2008, Siemens Ltd has reported a 7 per cent increase in sales turnover, at Rs8,296 crore, from Rs7,727 crore in in the previous year. Net profit after tax remained steady at Rs593 crore, due to a rise in costs in certain large projects, the company said.

Siemens, however, saw its base business grow exceptionally well. Sales rose 21 per cent and orders rose 27 per cent while profits from operations vaulted 68 per cent, the company said.

Key drivers of Siemens' business in India were power, industrial solutions and services and automation and drives, Bruck said.

Replying to questions during the press conference, Bruck said fiscal 2007-08 has been quite satisfactory in terms of growth and the company was looking at 2008-09 with cautious optimism. He said the company expected equal growth for all sectors in which it operated in the current fiscal.

Replying to a question regarding payment delays in the current scenario, he said this was only a natural and continued to present some challenges for the company. He added the company will be extremely cautious on this aspect.