Siemens on Friday said its board has approved the sale of its large drives applications business to a subsidiary of Siemens AG for Rs 440 crore.
"The Board of Directors of Siemens Limited has approved the sale and transfer of its Large Drives Applications (LDA) business to Siemens Large Drives India Private Ltd (a subsidiary of Siemens Large Drives GmbH, which in turn is a subsidiary of Siemens AG) with effect from July 1, 2022, and is subject to receipt of requisite statutory and regulatory approvals, as applicable," a company statement said.
The LDA business within Siemens Ltd recorded revenue from operations of Rs 4,437 million for FY 2021 and an operating profit of Rs 251 million, it added.
As of FY 2021, the LDA business contributed 3.4 per cent and two per cent, respectively, to the total revenue from operations and profit from operations of Siemens Ltd.
Following a valuation done by an external independent valuer, the LDA business was approved for sale and transfer by the board for a consideration of Rs 4,400 million (Rs 440 crore).
Siemens Ltd is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power.
From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation, the company creates technology with purpose, adding real value for customers.
By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets to transform the every day for people.
Siemens Ltd is the flagship listed company of Siemens AG in India. As of September 30, 2021, Siemens Ltd had revenue from continuing operations of Rs 12,756 crore and 8,608 employees.