Siemens buys Indian electrical gear maker C&S for around Rs2,100 cr
27 January 2020
German electrical and engineering group Siemens AG is acquiring Indian electrical equipment maker C&S Electric in for around Rs2,100 crore (267 million euro or $296.21 million), the group said on Friday.
New Delhi-based C&S makes low-voltage switchgear parts, metering devices and other products used to transmit and distribute electricity, Siemens said.
The acquisition will address rising demand for low-voltage power distribution across industry, infrastructure and buildings in India, it added.
Siemens will acquire 99 per cent of C&S Electric Limited from its promoters, in a transaction that strengthens the company’s local market presence while also enabling creation of an export hub.
C&S is one of the leading providers of electrical and electronic equipment for infrastructure, power generation, transmission and distribution. The acquisition will strengthen Siemens’ position as a key supplier of low-voltage power distribution and electrical installation technology in one of the world’s fastest-growing economies.
Under the agreement, Siemens Ltd will acquire approximately 99 per cent of the equity share capital of C&S Electric Limited for around Rs2,100 crore (approximately EUR 267 million).
In future, Siemens envisions 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.
The scope of 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 Electric has more than 50 years of experience in India and will continue to operate under its own brand name. “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 including construction, industry, data centers, smart campuses and other city infrastructure,” the company stated.
“Safe, intelligent and reliable electrification is the backbone of economic and societal development. Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses the needs of a very important market,” Cedrik Neike, member of the managing board of Siemens AG and CEO Smart Infrastructure, said.
“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 CEO of Siemens Ltd.
“Having been a leading participant in the Indian switchgear market since 1966, we are now extremely delighted to be part of the Siemens family, an organisation that has pioneered and developed the switchgear market in India and globally for many decades. We both support the ‘Make in India’ initiative and our products, people and vision are perfectly synchronized to meet the growing requirements of the Indian and global markets,” R N Khanna, founder and chairman of C&S Electric, said.
C&S Electric was founded in 1966. It has more than 5,000 employees across three main manufacturing locations – Haridwar, Noida and Guwahati – including a research and development center in India.
The C&S deal comes as Siemens reorganises itself around its smart infrastructure and industrial automation businesses when it spins off its energy business this year.
Siemens said the closing of the acquisition is subject to regulatory approvals.