CCI Approves C&S Electric Acquisition By Siemens Limited

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  • Certain other businesses of C&S, such as MV switchgear and package sub-station, lighting diesel generating sets, engineering, procurement and construction business and the “Etacom” busbars business will be retained by the existing promoters of C&S
  • Siemens also has a strong Order backlog of Rs 13,142 crore., which has the potential to provide visibility of more than one year of Revenue and has improved its Cash performance during the quarter

According to a report, the Competition Commission of India has permitted the proposed acquisition of C7S Electric Limited by Siemens Limited. The proposed combinations predicts the acquisition of 100 percent of the share capital of C&S Electric Limited (C&S) by Siemens India. 

The Ministry Of Corporate Affairs said “At the time of closing of the proposed combination, the scope of business of C&S shall include low-voltage (LV) switchgear components and panels, LV and medium voltage (MV) power busbars.”

Along with this, there would be protection and metering devices of C&S. Certain other businesses of C&S, such as MV switchgear and package sub-station, lighting diesel generating sets, engineering, procurement and construction business and the “Etacom” busbars business will be retained by the existing promoters of C&S. 

Decline of 59.5 percent in revenue 

Earlier Siemens Limited had reported a decline of 59.5 percent in revenue for the 3rd quarter of the financial year. Their revenue dropped from Rs 3,110 crore to Rs 1,260 crore driven by the closure of all factories and project sites on account of COVID-19. This had also resulted in a Net Loss of Rs 5 crore compared to Profit after Tax of Rs. 248 crore for the same period last year. 

The company also has a strong Order backlog of Rs 13,142 crore., which has the potential to provide visibility of more than one year of Revenue and has improved its Cash performance during the quarter. 

Siemens and C&S Electrical

Siemens India focuses on the areas of power generation and distribution, intelligent infrastructure for building and distributed energy systems, and automation and digitalisation in the process and manufacturing industries. It also supplies smart mobility solution for rail and road transport and infrastructure solutions for Smart Cities.

On the other hand, C&S manufactures a range of electrical switchgear, power protection and electrical distribution. It also consists of an electrical contracting business which performs turnkey solution for industrial and commercial electrification, substations and power plants. In addition, C&S is also engaged in the design and execution of grid-connected solar photovoltaic (PV) power plants.

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