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This acquisition will strengthen Siemens’ Automation and Drives business and will expand its drive technology portfolio by adding gear systems.
Siemens signed a MoU with Babcock Borsig Limited to acquire a 50% stake in Flender Limited. Siemens will purchase this equity stake from Babcock Borsig for a total consideration of about Rs 650 million (Euro 12 million). Flender Limited is a joint venture between Flender AG and Babcock Borsig, with Babcock Borsig Ag & Williamson Magor group each holding 50 % equity stake in Babcock Borsig. As announced earlier, Siemens Board had approved the proposal to acquire a 50% stake in Flender Limited.
Earlier in August 2005, Siemens AG globally acquired a majority stake in Flender AG. With this acquisition, Flender will now be Siemens’ company in India. Flender is one of the leading players in the industrial gearboxes segment with revenues of around Rs 857 million for the year ended September 30, 2005. Its current employee strength is around 325 and has a manufacturing facility at Kharagpur, West Bengal. The company caters to the major market segments like cement, sugar, steel and rubber.
Mr. J. Schubert, Managing Director, Siemens Ltd., said, “The acquisition of Flender is yet another step in our Investment-led growth strategy. This new business will support our portfolio, especially in the drives and motors segments. Further as a part of our strategy, we will continue on the path of mergers and acquisitions that compliments our overall portfolio”.
Siemens Ltd is the flagship of the Siemens Group in India. The Siemens Group is a leading provider of industry and infrastructure solutions in India with a business volume aggregating about Rs 5400 crores. It operates in the core business segments of Energy, Industry and Buildings, Information Technology, Communication, Transportation, Healthcare and Lighting. It has a nation-wide Sales and Service network, 15 manufacturing plants, some 500 strong network of channel partners and through its 11 Companies, the Siemens Group employs over 12,000 people.