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Siemens to acquire C&S Electric for Rs 2,100 crore

Under the agreement, Siemens Ltd. will acquire approximately 99 percent of the equity share capital of C&S Electric Limited for around Rs. 2,100 crore (EUR 267 million). The buyout will pave the way for the establishment of a design and manufacturing hub in India, supporting the export of electrification solutions to fast-developing markets around the world, said a company statement.

, ET Bureau|
Last Updated: Jan 25, 2020, 07.13 AM IST
C&S Electric has over 50 years of experience in India and will continue to operate under its own brand name.
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MUMBAI: Siemens India has agreed to acquire Delhi-based electrical and electronic equipment maker C&S Electric for cash consideration of Rs 2,100 crore in its biggest acquisition in the country till date outside the group.

The deal will help Siemens strengthen position as a supplier of low-voltage power distribution and electrical installation technology in the country. “Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses needs of a very important market,” said Cedrik Neike, member of the managing board of Siemens AG and CEO of the German engineering conglomerate’s smart Infrastructure business.

The closing of the acquisition is subject to regulatory approvals and is likely to be completed by the end of December 2020.

Siemens India managing director Sunil Mathur said the acquisition will help the company establish a design and manufacturing hub that will support export of electrification solutions to fast-developing markets around the world. “This deal is margin accretive, it adds to our volumes, and it helps us a roadmap for growth into the infrastructure area for the future,” said Mathur who is also the chief executive officer of Siemens India.

C&S Electric, founded in 1966 by entrepreneur RN Khanna, provides electrical and electronic equipment for infrastructure, power generation, transmission and distribution. The company reported revenue of Rs 1,200 crore in FY2019, Mathur said.

Siemens will retain C&S Electric’s low-voltage switchgear components and panels, low and medium voltage power busbars as well as protection and metering devices businesses. Other businesses of the company, such as medium voltage switchgear and package sub-station, lighting, diesel generating sets, engineering, procurement and construction and the Etacom busbars business, will be divested before the acquisition of shares and retained by the owners of C&S Electrics.

C&S Electric, which operates under its own brand, will help Siemens to better serve customers requiring electrification in areas such as construction, industry, data centres, smart campuses and other city infrastructure, Siemens said. The target company has more than 5,000 employees across three main manufacturing locations in Haridwar, Noida and Guwahati, and a research and development centre.

Ambit Capital said it advised C&S on the deal. Siemens India has done acquisitions of group companies and others to fill gaps in its existing businesses.

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