The Hindu Business Line : Siemens to unveil India growth strategy in Sept

Mumbai, August 21 Siemens is set to double sales from its Indian operations over the next three years, according to Mr Peter Loscher, President and CEO.

And the growth would be powered by demands of a 1.1-billion domestic market, increased local outsourcing and making India a local hub for exports.

“India plays an important part of my CEO agenda,” he said, making his first visit to India in a little over 50 days after taking on the top job at Siemens.

China too found a mention on the CEO’s agenda, with Mr Loscher reiterating the importance of the two emerging economies, even as he leaves for China this evening.

Mr Loscher took charge as Siemens President and CEO in July.

Outlining the growth plan for the Indian market, he said that it would come from the pillars of its existing business – healthcare, infrastructure, energy and exports, but did not divulge financials.

The company is reviewing its growth strategy, details of which will be revealed in September, he indicated.

Responding to queries, he said that the company had no plans to delist in India.

On Indian operations, he said that in the last three years, business volumes have tripled.

“We are here to stay, we are here to grow,” he said, reiterating the company’s strategy to double the size of its operations in three years.

The company contributes about four per cent of the German parent’s total revenues.

Expressing confidence in the country’s nine per cent plus GDP growth, he said that Siemens was at the “heart of India’s growth agenda,” be it power, transportation, healthcare or water-related businesses.

In the power sector, the company would support the Government’s aim to bring affordable power to all.

On the manufacturing front, be it circuit-breakers or x-ray machines, India has been making low-cost high-quality products for the domestic and global markets, he said.

Through its infotech arm, Siemens India contributes over 10 per cent to Siemens global software development and more than 30 per cent to the healthcare-related software development, he said.

More sourcing from the local market is on the cards, he indicated.

Siemens Ltd has 17 manufacturing facilities in India with business volumes aggregating Rs 9,000 crore.

On making India a gateway for exports to markets in Bangladesh, West Asia and Africa, he pointed out that exports volumes from India have grown from 6-7 per cent three years ago to over 35 per cent of the total turnover today.

Other Government initiatives like the privatisation of airports and ports and setting up of mega power plants would also augment growth, he added.

Following the acquisition of Bayer Diagnostics, the integration process is under way in India and all “good people” will be retained, said Siemens Ltd’s Managing Director, Mr Jurgen Schubert.

Healthcare is a major focus area for the company.

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