Siemens India has announced its biggest acquisition in India — electrical and electronics equipment maker C&S Electric. The buyout is intended to expand its presence in the country and pave the way for establishing a design and manufacturing hub that will support exports to fast-developing markets globally, Sunil Mathur, managing director and chief executive officer, told Rachita Prasad. Mathur said orders have slowed and expects the Union Budget later this week to boost investment. Edited excerpts.
What’s the rationale behind this acquisition?
Our strategy has been to focus on profitable growth, for which we will look at all avenues. We have been concentrating on organic growth and growing profitably organically. Growth and profit performance have been steady over the last couple of years. Now, we want to take it to the next level. We identified infrastructure as one of the most attractive areas in the country. We have been present in the low voltage business for many years but…we were not adequately represented in the infrastructure business. C&S is one of the leaders in the low voltage market and are very active in the infrastructure space. This acquisition will help us serve the local market and support us in and establishing India as a manufacturing hub for export of electrical solutions.
Is there appetite for more acquisitions? Will the focus on organic growth continue?
We always have an appetite for mergers and acquisitions. We are looking at both organic and inorganic growth.
What will be growth areas for Siemens in the next 2-5 years?
We are in infrastructure, energy power transmission and distribution of power, and other sectors that the country needs and the government is spending on. We have a two-pronged approach — to serve the Indian market and support the global business of Siemens by sourcing the maximum possible out of India.
How is the Indian market looking right now? How is the order pipeline?
There are some areas that are doing better than others, such as the industrial business which is doing well in pockets. Infrastructure is not growing at the rate at which it should. It’s a mixed picture.