Siemens Ltd said on Friday it has inked a pact to acquire a 99% stake in New Delhi-based electrical equipment maker C&S Electric Ltd for around Rs 2,120 crore ($297 million).
The acquisition will strengthen the company’s position as a key supplier of low-voltage power distribution and electrical installation technology in India, the local unit of German conglomerate Siemens AG said in a statement.
Siemens said it hopes the deal will pave the way for the establishment of a design and manufacturing hub in India in the future.
This is the second big-ticket inbound takeover in India’s electrical equipment sector within two years. In May 2018, Schneider Electric inked a deal with Larsen & Toubro Ltd to buy its electrical and automation business for Rs 14,000 crore in cash.
The deal, which received a clearance from the Competition Commission of India in April last year, is likely to be closed in early 2020, the French conglomerate had said in September last year. Once completed, the acquisition will put the Indian business just behind the US and France in Schneider’s portfolio of global businesses.
Siemens said it will buy the Indian operations of C&S Electric’s low-voltage switchgear components and panels, low- and medium-voltage power busbars as well as protection and metering devices businesses.
C&S Electric’s owners will retain some other businesses such as medium-voltage switchgear and package substation, lighting, diesel generating sets, and engineering, procurement and construction.
C&S Electric was founded in 1966 by RN Khanna, who is also the company’s chairman. It has more than 5,000 employees across factories in Haridwar, Noida and Guwahati, and at a research and development centre.
The company had revenue of Rs 1,241 crore for 2018-19. According to its website, it exports equipment to more than 85 countries and gets 26% of its revenue from international markets.
C&S Electric will continue to operate under its own brand name, Siemens said, adding that the deal will help it cater to customers in areas including construction, industry, data centres, smart campuses and other city infrastructure.