The companies noted that the acquisition addresses rising demand for low-voltage power distribution in India. The Khanna family, former promoters of C&S Electric, to continue business under ‘Trimaster’ banner
Siemens has acquired India-based C&S Electric in a deal worth Rs 2,100 crore. Apart from gaining access to the Indian market, the transaction is also aimed at creating an export hub in the country.
“Acquisition addresses rising demand for low-voltage power distribution in India. Siemens has acquired 99.22 per cent (approximately) of C&S Electric Limited from its promoters for Rs 2,100 crore, ” read an official press note released by the company.
This acquisition, as per Frost and Sullivan, has the potential to give birth to India’s second largest player in the low voltage switchgear market. Siemens and C&S Electric held approximately 16 per cent shares of this market in 2018. Out of these six per cent were held by India’s C&S Electric.
The acquisition encompasses Siemens now incharge of the Indian operations of C&S Electric’s low-voltage switchgear components and panels. It also includes operations in the low and mediumvoltage power bush bars as well as the protection and metering devices businesses.
C&S’ business verticals including the likes of engineering, procurement, and construction were no a part of the deal. These will continue to remain with the promoters of C&S Electric in India.
The ‘Trimaster’ banner
The former promoters of C&S Electric now aim to consolidate their retained businesses, primarily of Lighting solutions, MV Switchgear solutions and DG Sets (JV) under the ‘Trimaster’ banner. The businesses excluded from this transaction have been consolidated by C&S Electric’s former promoters- the Khanna family.
Trimaster’ is currently managed by the three Managing Directors Anuj, Rishi and Aditya Khanna who have steered the ‘C&S Electric’ group founded by RN Khanna and Ashok Khanna in 1966, since the early 2000’s. The turnover of the ‘Trimaster Group’ currently stands at approximately Rs 600 crores.
The former ’C&S Electric’ promoters have extensive plans to deploy proceeds from the divestment to Siemens towards growth of these businesses under the Trimaster Group of companies. In the lighting and medium voltage businesses – Trimaster’s subsidiary companies retain the right to use the C&S brand name for a period of one year post the acquisition.
“Anuj, Rishi, and Aditya were given independent charge soon after joining C&S in 1998. Building on the solid initial base which they inherited, they created a world class organization serving some of the most demanding customers with sincerity and creativity, which was much appreciated by a global leader like Siemens. They have equally enthusiastic and creative ideas for ‘Trimaster’s businesses which are backed by strong management teams and technical capabilities. I wish all the employees of ‘C&S’ moving with the acquisition, and the incoming management team, as also the ‘Trimaster’ teams, the very best,”noted RN Khanna, Founder and former Chairman of C&S Electric India.
Trimaster’s MV Voltage Switchgear business will be executed through its wholly owned subsidiary ‘C-sec Technologies Ltd.’ ‘C-sec Technologies’. Trimaster’ will also transition their lighting business line from the ‘C&S Electric’ brand into the ‘True North’ company (a wholly owned Trimaster subsidiary) over the next 12 months. The lighting industry within the country currently stands at approximately Rs.20000 crores today, and is experiencing exponential growth, with further expectations of growing more in the future owing to the low saturation level of the Indian lighting market. Commenting on this transition of ‘C&S Electric’s lighting product business into True North.
Vivek Sharma, former MD of Panasonic India, and presently a Professional Coach and advisor to Trimaster Group said, “From our past sourcing experience with C&S, their commitment to manufacturing excellence in terms of innovation, design, quality, durability and reliability is world class. Looking at the investments the group is making into that business, and considering the creativity, technical competence, drive and passion displayed by their team for the Lighting business, the writing is on the wall. The ‘C&S Lighting’ business in its new avatar as ‘True North’ will achieve greater heights in the industry within a very short span of time.”