Siemens Exits Low-Voltage Motor Operations in Innomotics Deal

What happened: Siemens Ltd has completed the sale of its Low Voltage Motors and Geared Motors business to Innomotics India Private Limited. The transaction is valued at ₹2,200 crore. 

Why it matters: Siemens is doubling down on its bigger plays in India with Industrial automation, digital industries, smart infra, mobility and software and digitization which individually and collectively are growing pies. The LV motor business was relatively small represented 6% of company revenue and 2% of operating profit, excluding the demerged energy business.

Industry context: Innomotics serves as a global hub for motors and large drives and finds a natural synergy in integrating the incoming business –  LV motor business as is depended heavily on Innomotics for IP and technical support.

Our take: Siemens is shedding a low-margin – low focus segment with limited fit, moving the business to an owner focused on motors and drives who as is technically supported the unit.