What Does Siemens India Do? Exploring Its Business Segments and Growth Vision

Siemens India operates across 5 key business segments that collectively contribute to its strong presence in the industrial and infrastructure space. These include:

• Smart Infrastructure (32% of revenue):
  This is the largest business vertical, offering smart metres, grid automation and energy-efficient solutions. It plays a pivotal role in modernising India’s electricity infrastructure.
   
• Energy (30% of revenue):
  This segment is focused on power transmission systems for critical sectors such as oil & gas, railways, and construction. Notably, Siemens contributed to electrifying Bengaluru Metro’s Phase 2—a key urban mobility project.
   
• Digital Industries:
  Catering to manufacturing, automotive, and pharmaceutical sectors, this division develops industrial automation software and sensors, aiding India’s Industry 4.0 ambitions.
   
• Mobility:
  Focused on the rail transport ecosystem, this division supports metros, trains, and related infrastructure with cutting-edge technologies.
   
• Others (including Healthcare):
  Though smaller in contribution, this segment includes medical technology such as MRI and CT scanners—an extension of Siemens' innovation in diagnostic equipment.

FY24 Performance: Revenue Peaks and Global Recognition

In FY24, Siemens India clocked ₹20,500 crore in revenue, aligned with its parent company Siemens AG’s October–September financial calendar. This performance made it the fifth-largest revenue contributor to Siemens AG globally, accounting for about 4% of its topline. More importantly, it’s the fastest-growing among all regional contributors.

India’s ongoing manufacturing resurgence has positioned Siemens India as a strategic growth hub. The company now aims to climb higher in the Siemens AG hierarchy, targeting the third or fourth spot in terms of global revenue share within the next three years.

Learning from the Parent: The Global Energy Demerger

Back in 2020, Siemens AG made a significant decision to demerge its global energy business. The rationale was to let the energy arm, then a loss-making division, operate independently without weighing down Siemens’ overall performance.

In hindsight, the move proved fruitful. Siemens Energy, now a standalone global entity, posted a profit of €480 million in Q1FY25—almost double the previous year’s numbers. It marked a stark turnaround from the €7 billion cumulative losses incurred between 2020 and 2023.

India Follows Suit: Siemens Energy India Demerger

Siemens India mirrored its parent’s strategy by demerging its energy business. Shareholders received one share of Siemens Energy India for every Siemens India share held.

This decision reflects a recognition that the energy segment has distinct capital needs, growth paths, and risk factors compared to the company’s core industrial and infrastructure operations. As a standalone entity, it can now pursue sector-specific opportunities more effectively.

Post-demerger, the promoter holding structure remains strong: Siemens AG and Siemens Energy Holdco retain a combined 75% ownership in Siemens Energy India, while the public holds the remaining 25%.

Read More:Siemens Share Price Drops 50% Post-Demerger with Siemens Energy India. 

Conclusion

By allowing the energy business to operate independently, Siemens India hopes to enable focused capital allocation, streamlined strategy execution, and potentially better valuation in the long run.

This structural change also aligns with Siemens AG’s broader goal of becoming a leaner, more innovation-driven enterprise focused on high-growth areas. As India’s economy accelerates, Siemens India seems poised to play a pivotal role, not just domestically, but in the global Siemens growth map.

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