Siemens Limited has announced its intention to demerge its energy business-Siemens Energy India into a separate listed entity, to focus on core businesses that meet the demands of shareholders at its German parent, Siemens AG..
This decision follows earlier discussions in December 2023 regarding the potential spin-off of its energy business. Siemens Energy sold an 18 per cent stake in the Indian entity to Siemens AG for approximately 2.1 billion euros, facilitating the demerger. The German engineering group had previously spun off and listed Siemens Energy in 2020. Post-demerger, Siemens will refocus on technology-driven development in infrastructure and industry segments, while the power generation segments, including renewable energy, will transition to Siemens Energy India. Further, the shareholders of Siemens will receive one share of Siemens Energy India for each share held. The demerger is aimed at enabling both entities to pursue specific strategies and make independent decisions on capital allocation. This move coincides with India’s expectations for rapid growth in power generation, with fiscal 2025 projected to witness the fastest pace of expansion since at least 2011-2012.