The Hindu Business Line : Siemens to invest Rs 100 cr; open to acquisitions

SIEMENS today announced that it would be investing around Rs 100 crore in India towards expansion of its factory infrastructure in the areas of transportation, power and information technology.

The company is also open to making investments in terms of acquisitions in the areas of manufacturing, engineering and software, said Mr J. Schubert, Managing Director, Siemens Ltd, at a press conference.

These investments would be part of the $500 million (around Rs 2,250 crore) that Siemens AG decided in 2002, to invest in India, he said. The Rs 100 crore investment would constitute the first phase of this larger investment plan.

Siemens Ltd's recent success in winning key orders has created a need to expand and increase existing capacities, he said.

A new traction motor factory in its existing manufacturing area in Kalwa (Maharashtra), extension of its manufacturing base in Nashik to produce invertors, a new software development centre in Bangalore, doubling of capacity at its medium voltage factory in Kalwa and expansion of its switchgear factory in Aurangabad are on the cards.

Siemens won a Rs 483 crore order last year for supply of the complete electrical equipment including the traction package for Mumbai suburban trains.

The traction motor factory is to cater to the demands arising from this order, Mr Schubert said. The cost of manufacturing out of India would be lower or on a par with the cost of imports from the company's facility in Spain, he added.

In opening up this factory, Siemens is making a considered decision with the long term in view, he said.

The expansion of capacities is the beginning of a dynamic process, he said. "We are doing a lot now on the factory side to increase capacity for the domestic market as well as exports."

Siemens Ltd is also responsible for the company's activities in countries such as Sri Lanka, where Siemens recently opened an office; Bangladesh as well as support for activities in Afghanistan.

Siemens Information Systems Ltd, now a 100 per cent subsidiary of Siemens Ltd, would employ between 500 and 700 people the coming year, so that its strength would increase from the current 2,300 to around 3,000, Mr Schubert said.

The percentage of exports from each of Siemens' manufacturing activities was increasing, he said.

More Stories on : New Projects | Electrical Goods

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page