Siemens Ltd, the public listed Indian arm of the German conglomerate, said its board has approved a proposal to acquire Siemens Rails Automations Pvt Ltd from a group firm for Rs 55 crore ($9 million).
Siemens Rails Automations is in manufacturing, supply, design, installation and commissioning of railway signalling equipment, comprising trackside and on board equipment.
It is held through two separate arms of German parent with Siemens International Holding BV, Netherlands owning 99.99 per cent and the remaining stake held by Siemens AG itself.
“The business is complementary to the existing business of the company and should provide significant synergies,” Siemens Ltd said in a filing to the stock exchanges.
German behemoth Siemens AG holds 75 per cent stake in Siemens Ltd.
Siemens Ltd board has also approved the appointment of Christian Rummel as an executive director and CFO of the company for four years. The appointment will take effect from February 1, 2014.
Meanwhile, the company announced its first quarter financial results for the period ended December 31, 2013 and posted a marginal 2.3 per cent rise in net profit to Rs 65.1 crore over the same period the previous fiscal. Total income declined from Rs 2503 crore to for the quarter ended December 31, 2012 to Rs 2,401.4 crore. Siemens follows a October-September financial calendar.
(Edited by Joby Puthuparampil Johnson)