Siemens India operates across 5 key business segments that collectively contribute to its strong presence in the industrial and infrastructure space. These include:
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.
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.
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.
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.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: May 14, 2025, 3:28 PM IST
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