`Infrastructure is in a mess, no more expansion plans in Bangalore'

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Mr J. Schubert
Mr J. Schubert

Our Bureau

Bangalore, Feb. 10

Miffed over the deteriorating infrastructure in Karnataka, global engineering giant Siemens AG has decided to freeze all expansion plans in the State.

"There will be no more expansion plans in Bangalore. Our business expansion will not happen here anymore. This State is not attractive for investors anymore," Mr Jurgen Schubert, Managing Director, Siemens Ltd, said here on Friday.

The company is a large investor in the State for telecom, medical and automotive software development and high-end research and development work. Its captive BPO in Bangalore alone employs about 900 people.

In fact, Bangalore alone accounts for about one-third (around 4,600) of the company's total employee strength of over 12,000 people and contributed 24 per cent of the total turnover in India last fiscal, whereas the southern region constitutes about 45 per cent (about 5,500) of the total employee strength.

Mr Schubert said Siemens would opt for other cities having better infrastructure facilities such as Chennai, Hyderabad, Delhi, Pune, Mumbai and even Kolkata to expand its business activities.

"Bangalore is in a mess. The road and power infrastructure in Bangalore is in total chaos," he asserted.

Efficiency and productivity will be hit if the company employees spend more time on the roads, travelling to work. To tide over the problem, Siemens has decided to shift its working hours in Bangalore from 7.30 a.m. from the earlier 8.45 a.m., Mr Schubert said.

(This article was published in the Business Line print edition dated February 11, 2006)
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