### **Overview** Siemens Ltd., the Indian arm of the global Siemens AG, is a technology leader focused on digitalization and sustainable transformation through integrated solutions in **Digital Industries (DI)**, **Smart Infrastructure (SI)**, and **Mobility**. With a robust local manufacturing footprint and strategic export ambitions, the company is well-positioned to capitalize on India’s infrastructure growth and global supply chain diversification. --- ### **Strategic Transformation and Portfolio Focus** #### **Demerger of Energy Business (Effective Q4 FY25)** - In March 2025, Siemens completed the demerger of its **Energy Business**, forming two independent entities: - **Siemens Limited**: Focused on DI, SI, and Mobility. - **Siemens Energy India Limited**: A standalone business with dedicated management, financial flexibility, and tailored go-to-market strategies for the energy value chain. - The demerger enables sharper strategic focus, improved capital allocation, and enhanced agility in responding to market dynamics. --- ### **Core Business Segments** #### **1. Digital Industries (DI)** - Position: Enabler of **Industry 4.0**, automation, and digital transformation across 23+ industrial verticals. - Key Focus: - Software-led transformation via **Siemens Xcelerator**, with over **200 real-world use cases** implemented in India (up from 100 in FY24). - Integration of **Industrial Edge**, **digital twins**, **AI/ML**, and **IT/OT convergence** to optimize manufacturing value chains. - Growth drivers: Semiconductor, EVs, batteries, and government PLI schemes. - Recent Milestones: - 20% productivity improvement at an automotive plant using **Industrial Edge**. - gPROMS-based digital twin for F&B client delivered **4% energy savings and 1.5% throughput gain** (ROI <12 months). - Localization: No local manufacturing of PLCs or DCS due to insufficient volumes; focus on **India-developed software** and services. - Challenges: Temporary order slowdown in FY24 now normalizing; margins and volumes expected to stabilize. #### **2. Smart Infrastructure (SI)** - Position: Integrator of **grid, building, and industrial technologies** for energy efficiency, sustainability, and decarbonization. - Key Focus Areas: - **Grid modernization**: EV charging, smart metering, RMUs, GIS, and STATCOMs. - **Building technologies**: Energy efficiency, fire safety, and security in commercial buildings, data centers, malls, and stadiums. - Growth Drivers: - Rising government and private capex in infrastructure. - Strong demand from data centers, urban infrastructure, and utilities under RDSS. - Localization & Capacity Expansion: - GIS factory in Goa at full capacity (18,000 RMU feeders, 1,000 MV panels), with ₹333 crore investment to expand to **22,000 feeders and 1,500 panels by FY27**. - e-Mobility strengthened via acquisition of **Mass-Tech Controls' EV charging division** (Jan 2024), offering AC and DC chargers (30–300 kW). - Services: Revenue from high-margin services (10–15% of total, strategic focus on expansion). #### **3. Mobility** - Position: Emerging global hub for **rolling stock and rail systems**, with a full portfolio including locomotives, bogies, signaling, and electrification. - Key Projects: - Supply of **1,200 locomotives to Indian Railways** (9,000 HP), with first delivery expected by end-FY26 and 35-year maintenance contract. - Role in **Vande Bharat** project: Supply of train sets, bogies, and traction systems. - Bangalore Metro electrification (58 km route) and Pune-Hinjewadi PPP Metro (consortium with Tata). - Localization & Export Hub Strategy: - **>90% localization** in bogies and 9,000 HP systems; already exporting globally. - New **metro train manufacturing hub in Aurangabad (INR 1.9 billion investment)**, to be operational in FY27, targeting exports to **Australia, Middle East, and Asia**. - Bogie factory in Aurangabad secured export order from **Romania**; third export order from parent company received in May 2025. --- ### **Digital Transformation Platform: Siemens Xcelerator** - Launched in India in 2022, Xcelerator is a **cornerstone** of Siemens’ strategy—bridging products, solutions, and ecosystems. - Features: - Open, secure, interoperable platform combining hardware, software, and services. - Marketplace with pre-configured digital solutions, use cases, and partner ecosystem. - Covers **Industrial Operations X** and **Building X** for production and building digitalization. - Impact: - Over **30% energy savings** in F&B via digital twins. - Deployed in **pharma, education, hospitality** to reduce downtime, energy, and emissions. - Supported by **5G-ready routers (Scalance MUM856-1/MUM853-1)** launched in FY24 for remote monitoring and edge computing. --- ### **Operational and Market Highlights (2024–2025)** | **Area** | **Highlights** | |--------|---------------| | **Exports** | India serves as a **“local for global” hub**. Exports declined to **15.4% of revenue in 2023** due to strong domestic demand, but **absolute export value grew 5%**. Growth seen in C&S, bogies, and propulsion systems. | | **Localization** | 32 factories in India support local and global supply chains. Decisions based on volume, ROI, and competitive pricing (“local for local, local for global”). | | **Growth Drivers** | Public capex, PLI schemes, metro rail expansion, data centers, decarbonization, and EVs. | | **Profitability & Margins** | - LVM: 6% revenue growth (backlog execution), but margin pressure (YTD EBITDA 7.8%).<br> - SI: ~11% EBITDA margin.<br> - Mobility: ~7% despite investment phase.<br> - ₹8.4 billion profit improvement via volume mix and pricing. | | **Sustainability Initiatives** | - Waste heat recovery, decarbonization, green buildings.<br> - Pay-as-you-save retrofits via Siemens Financial Services.<br> - Support for greenfield vaccine and EV manufacturing facilities. | --- ### **Strategic Shifts and Future Outlook** - **From Electrification to Digitalization**: Strategic pivot to higher-value software, automation, and digital services. - **One Tech Approach**: Cross-segment integration of DI and SI solutions to solve customer-specific challenges (e.g., cybersecurity for metals industry). - **Expansion into New Markets**: - **E-Mobility**: Full solutions from grid to socket, partnerships with **Switch Mobility**, and deployment of 38 e-buses in **Chandigarh**. - **SME Enablement**: Xcelerator platform used to onboard suppliers and SMEs into digital ecosystems. - **Service-Led Growth**: Long-term maintenance contracts (e.g., 35-year locomotive servicing) to ensure recurring revenue. --- ### **Challenges and Strategic Responses** | **Challenge** | **Response** | |-------------|------------| | **Low Margins in LVM Business** | Exploring strategic options post-**Innomotics sale to KPS Capital (Oct 2024)**; evaluating future of LVM operations. | | **Cybersecurity Risks** | Developing end-to-end OT cybersecurity solutions using anomaly detection, threat monitoring, and CERT certification. | | **Margin Pressure in Rail Automation** | Heavy investments in bogie factory and Nasik facility; recovery expected as project volumes scale. | | **Global Supply Chain Complexity** | Localized production where viable; strong integration with global Siemens network. | --- ### **Financial and Market Position (as of Nov 2025)** - **Order Backlog**: Record high, driven by large mobility, grid, and digital infrastructure projects. - **Revenue Mix**: ~84–86% private sector, ~14% exports, ~13.5% project-based. - **Customer Base**: Diversified across **automotive, pharma, data centers, utilities, rail, steel, and cement**. - **Headquarters & Structure**: Independent Indian public company post-demerger; subsidiaries include **Siemens Rail Automation**, **C&S Electric**, and associate **Sunsole Renewables**. ---