SIEMENS Energy to be a separate entity in alignment with global strategy

Siemens AG announced its Vision 2020+ which included the spin-off of its Gas & Power [G&P) i.e., Energy Business into Siemens Energy.

- Anirudha Jain

The rationale was to give the energy division the independence to pursue its own strategy. The global decision has finally come to fruition in the Indian Entity. Siemens India announced demerger of its energy arm. The decision will facilitate separation of its matured business from emerging businesses.

Siemens Limited ("Demerged Company") is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power. The equity shares of Siemens Limited are listed on the nationwide stock exchanges. Siemens Limited operates in India through four major businesses:

• Digital Industries

• Smart Infrastructure

• Mobility

• Energy

Siemens Energy India Limited ("Resulting Company") is a wholly-owned subsidiary of Siemens Limited incorporated to facilitate the proposed demerger.

Siemens AG, the holding company of Siemens Limited demerged its energy business globally in the year 2020. As per the statement issued by Siemens AG, the separation of energy business in India was not feasible at that point. Post completion of global separation, Siemens AG & Siemens Energy AG proposed to Siemens Limited for separation of its energy business now and in continuation of the aforesaid strategy, it is now proposed to demerge the Energy Business of Siemens Limited into an independent company which will be listed separately.

The Proposed Transaction

The Board of Directors of Siemens Limited today approved the proposal to demerge the Company's Energy Business into Siemens Energy India Limited, a wholly owned subsidiary of the Company currently, which will get listed pursuant to the proposed demerger, subject to requisite regulatory, statutory, shareholders and creditors approvals.