Siemens to acquire C&S Electric For Rs.2100 Cr
Siemens Ltd has inked a pact to acquire a 99% stake in New Delhi-based electrical equipment maker C&S Electric Ltd for around Rs 2,120 crore ($297 million).
The acquisition will strengthen the company’s position as a key supplier of low-voltage power distribution and electrical installation technology in India, the local unit of German conglomerate Siemens AG said in a statement.
Siemens said it hopes the deal will pave the way for the establishment of a design and manufacturing hub in India in the future. This is the second big-ticket inbound takeover in India’s electrical equipment sector within two years.
The deal will help Siemens strengthen position as a supplier of low-voltage power distribution and electrical installation technology in the country. “Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses needs of a very important market,” said Cedrik Neike, member of the managing board of Siemens AG and CEO of the German engineering conglomerate’s smart Infrastructure business.
In May 2018, Schneider Electric inked a deal with Larsen & Toubro Ltd to buy its electrical and automation business for Rs 14,000 crore in cash. The deal, is expected to be closed in early 2020 after get the clearance from the Government.
Once the deal is completed, the acquisition will put the Indian business just behind the US and France in Schneider’s portfolio of global businesses. Siemens said it will buy 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.
C&S Electric’s owners will retain some other businesses such as medium-voltage switchgear and package substation, lighting, diesel generating sets, and engineering, procurement and construction. It was founded in 1966 by RN Khanna, who is also the company’s chairman. It has more than 5,000 employees across factories in Haridwar, Noida and Guwahati, and at a research and development centre.
C&S Electric will continue to operate under its own brand name, Siemens said, adding that the deal will help it cater to customers in areas including construction, industry, data centres, smart campuses and other city infrastructure.
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