Skip to Content
Siemens expects to win new orders of around INR 1 trillion in the next three fiscal years 2010 until 2012, which will be generated by government stimulus programs already announced around the world. Green technologies are expected to account for 40 percent or approximately INR 400 billion of this total, which will significantly increase the share of the company’s revenues from its environmental portfolio in the future. Siemens based this forecast on an initial systematic analysis of the largest stimulus programs. “With their programs, governments worldwide are sending the right signal. Against the backdrop of the worst global economic crisis in decades, these government measures are at least partially cushioning, in some cases, sharp declines in private-sector demand. They should also have a stabilizing effect on our business,” said Siemens President and CEO Peter Löscher. “In addition, the government programs will safeguard jobs worldwide. The large portion of the investments in environmental technologies will probably create new green jobs as well. This applies particularly to the green infrastructure giant Siemens,” Löscher added.
To overcome the global economic crisis, stimulus programs of around INR 130 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or some 47 trillion – is slated for investment in infrastructure projects. The remainder is accounted for by tax cuts, for example, and other governmental non-infrastructure related measures. The total volume of planned infrastructure expenditures relevant for Siemens comes to about INR 10 trillion globally. Given the company’s current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of around INR 1 trillion, of which approximately INR 400 billion will likely come from environmental technologies. In fiscal 2008, Siemens’ environmental technologies generated revenue of around INR 1.3 trillion. The company intends to increase this figure to INR 1.7 trillion a year by 2011.
At slightly more than INR 5.7 trillion, the share of the U.S. stimulus program relevant for Siemens represents the largest share of the worldwide total. China is in second place with a Siemens-relevant share of around INR 1.7 trillion, followed by Germany with a share of some INR 330 billion. In many of the worldwide stimulus programs major parts of the amounts are earmarked for green technologies. For example, investments in green technologies account for nearly 50 percent of the Siemens-relevant share of China’s stimulus program and for about 60 percent of the corresponding share of Germany’s stimulus program. “The various governments are strongly focused on sustainable investments. Siemens can help other countries to reach their climate protection targets, especially in close partnership with the local communities,” said Peter Löscher.
Siemens has strong roots in the majority of its local markets – and has had, in most cases, for over 100 years. Local value-added, a reputation as a respected and important employer and the social commitment of the company and its local employees make Siemens a trusted and valued partner in regions all around the world. The company has already been involved in helping to build the infrastructures in many countries, now working to revive their economies through additional investments in these areas.
Siemens, with more than 50 years of incorporation in India has a strong and well established presence across the country. Today, over 17,000 employees work across various offices and factories in the country. “Over the years, we have emerged as the leading provider of infrastructure solutions in India with a robust and innovative product portfolio in all three sectors of industry, energy and healthcare. About 25 percent of power in India is installed with Siemens technology, whereas, in the Healthcare sector, we lead the market by continuously introducing the latest technologies. “said Dr. Armin Bruck, Managing Director, Siemens Ltd
Siemens has continued with its investment plans and focused on strengthening the local manufacturing base. In the last two years, Siemens has added three new factories in the energy sector alone. “Our constant focus is to bring world-class and high technology products to India,” added Dr Bruck. Siemens has commissioned India’s first and the longest 2,500MW HVDC transmission system over a distance of 1450 km starting from East to South (Talcher-Kolar). Recently, the Company also bagged a contract from Adani Power to construct India’s first private sector High-voltage-direct-current (HVDC) system.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 420,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS). Further information is available on the Internet at: www.siemens.com.
Siemens in India
Siemens Ltd is the flagship listed company in India. Siemens in India, which comprises 20 legal entities, is a leading provider of industry and infrastructure solutions with a business volume aggregating about Rs 11,800 crore, as on September 2008. It operates in the core business areas of Industry, Energy and Healthcare. It has nation-wide Sales and Service network, 20 manufacturing plants, a network of around 500 channel partners and employs about 17,200 people.
This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments in major business areas and recessionary trends); the possibility that customers will delay conversion of booked orders into revenue or that our pricing power will be diminished by continued adverse market developments, to a greater extent than we currently expect; the behavior of financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and further deterioration of the capital markets; the commercial credit environment and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; future financial performance of major industries that we serve, including, without limitation, the Sectors Industry, Energy and Healthcare; the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings, including corruption investigations to which we are currently subject and actions resulting from the findings of these investigations; the potential impact of such investigations and proceedings on our ongoing business including our relationships with governments and other customers; the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about certain of these factors is contained throughout this report and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.