Siemens Ltd. Sells Mechanical Drives Business to Siemens

Mumbai, India - Siemens Ltd gets approval from its Board of Directors for the sale and transfer of its Mechanical Drives (MD) business at Rs. 440 crore to Flender Drives Pvt Ltd. The latter is a subsidiary of Flender GmbH, which in turn is a subsidiary of Siemens AG. The decision was made based on an independent validation, put forward by the Board of Directors and the Audit Committee.

The MD business within Siemens Ltd achieved a revenue of Rs. 683.8 crore for the financial year 2019 and had an operating loss of Rs. 55.3 crore.

“Potential growth in this business will require substantial Capex and moreover, there are no synergies with the existing businesses of Siemens Ltd. Keeping the interests of the shareholders in mind, the Board of Siemens Ltd has approved the sale of this business to Siemens AG which has also announced their intention to publicly list this business via a spin-off,” explained Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd.

Image Source: Siemens

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