Siemens Ltd.’s Board has approved the sale of large drives applications business to a subsidiary of Siemens AG for ₹440 crore.
“Following a valuation done by an external independent valuer, the LDA business was approved for sale and transfer by the Board, for a consideration of ₹440 crore,” the company said in a statement.
The transaction is subject to statutory and regulatory approvals.
The large drives applications business within Siemens recorded revenue of ₹443 crore for FY21 and an operating profit of ₹25 crore. As of FY21, the business contributed 3.4% and 2%, respectively, to the total revenue and profit of Siemens.
The transaction is consequent to the intent of Siemens AG to carve out the large drives applications business globally into a separate legal entity.
Siemens Ltd is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power.
From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation, the company creates technology with purpose, adding real value for customers.
By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets to transform the everyday for people.
Siemens Ltd is the flagship listed company of Siemens AG in India.
Source: Mint