C&S Electric Acquisition by Siemens Limited Approved by CCI

CCI has approved the proposed acquisition of 100 percent of the share capital of C&S Electric Limited by Siemens Limited.

The Competition Commission of India (CCI) on August 20, 2020, has approved the proposed acquisition of C&S Electric Limited by Siemens Limited (Siemens India). The proposed combination envisages the acquisition of 100 percent of the share capital of C&S Electric Limited (C&S) by Siemens India.

“At the time of closing of the proposed combination, the scope of business of C&S shall include low-voltage (LV) switchgear components and panels, LV and medium voltage (MV) power busbars as well as protection and metering devices of C&S. Certain other businesses of C&S, such as MV switchgear and package sub-station, lighting, diesel generating sets, engineering, procurement and construction business and the “Etacom” busbars business will be retained by the existing promoters of C&S,” the Ministry of Corporate Affairs said in its release.

Siemens India focuses on the areas of power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalisation in the process and manufacturing industries. It also supplies smart mobility solutions for rail and road transport and infrastructure solutions for Smart Cities.

C&S manufactures a range of electrical switchgear, power protection and electrical distribution products. It also has an electrical contracting business that performs turnkey solutions for industrial and commercial electrification, substations and power plants. In addition, C&S is also engaged in the design and execution of grid-connected solar photovoltaic (PV) power plants.

Recently, Siemens Limited reported a decline of 59.5 percent in Revenue for the 3rd quarter of the financial year, dropping from Rs 3,110 crore to Rs 1,260 crore driven by the closure of all factories and project sites on account of COVID-19. This also resulted in a Net Loss of Rs 5 crore compared to Profit after Tax of Rs 248 crore for the same period last year. The Company, however, has a strong Order Backlog of Rs 13,142 crore, which provides visibility of more than one year of Revenue and has improved its Cash performance during the quarter.