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Engineering major Siemens Ltd having a cash surplus of ₹2,300 crore could acquire new businesses, which will support existing verticals of energy, automation and engineering services, a senior company official said.
The Managing Director and Chief Executive Officer, Sunil Mathur, told BusinessLine that the management will look at the acquisition route either for getting a new technology, which could be used in local and international market, or accessing newer markets based on better dealership network.
Without revealing the finer details of the acquisition process, Mathur said that the company regularly gets new proposals for acquisition. The books of accounts of companies under consideration are scanned and they are reviewed from a business case perspective.
Mathur said the company is already having 22 factories, therefore, investment in newer factories will be made when existing capacities are fully utilised. In the last five years, Siemens has been investing about on an average of ₹200-250 crore in the Indian market. This period was overshadowed by the global financial crisis, but the company continued to invest in the market, he said.
Urban transportationMathur said that the company was looking at opportunities in urban transport systems and mega projects offered by the Railways. The company will bid for metro rail systems, signalling, locomotives, light rails, rail electrification systems and projects under the Dedicated Freight Corridor.
On the gigantic ₹98,000 crore bullet project, he said the company was already working with the Railways for the feasibility study report and was looking at various corridors which will come up under the project.
On the green energy businesses, Mathur pointed that the Indian solar market had not reached a stage in the country where the company could make substantial money. However, wind power business will remain on the radar and would revisit the wind power generation business.
Siemens had entered wind power generation business in Gujarat but had to write it off due to the withdrawal of subsidy by the State government. It continues to make gears for other wind turbine manufacturers.
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