German engineering major Siemens will invest Rs 1,600 crore (€250 million) in India over the next three years, said global CEO and president Peter Loescher, who’s in India as part of the business delegation with the German President Horst Koehler.
This is double of the company’s current investment level in India, he said.Loescher said the planned investment will be for entering the renewable or green energy market and expanding presence in value-priced products.
Coinciding with this investment, the company plans to increase its workforce in India from 17,000 to 25,000 by the year 2012.
Siemens aims to generate revenue of about Rs 6,500 crore (€1 billion) by the financial year 2020 with value-priced products from India, top officials said. That would mean a 10-fold increase in revenue from the current Rs 650 crore (€100 million).
Koehler said the company was targeting development of airports and ports. While Siemens is already in a contract for the Bangalore International Airport, the company is exploring opportunities in developing around 200 airports expected in the country over the coming years.
“We are in the race (for developing airports),” a top official pointed out. Also, Siemens is targeting the ports segment, to refurbish the existing ones and make them more efficient.
Also, X-ray machines is a segment that Siemens is eyeing for its value-priced products hub in India.It will establish six new hubs in the country, targeting different sectors and for both the domestic and international markets.
Out of the Rs 1,600 crore investment, Siemens would spend about Rs 500 crore on building high-end technology for the wind turbine markets. The company, which is in the process of finalising the location for a manufacturing facility for wind turbine, plans to begin commercial production in 2012. Tamil Nadu and Gujarat are among the states that the company is looking at for the same.
“India’s demand for power generation is a huge opportunity for all types of energy resources,” Loescher said. On nuclear energy, the company plans to tap the market along with Russian firm Rosatom, he added.
Meanwhile, Siemens said that it has received a contract from the Power Grid Corp (PGCIL) to construct a new 765/400kV sub-station at Meerut and augment sub-stations at Mandola (UP) and Baalabgarh (Haryana).
Siemens will supply products such as circuit-breakers, current transformers, capacitor voltage transformers, disconnectors, surge arrestors and solutions like sub-station automation. The order will be commissioned in January 2011 and has a value of more than Rs 100 crore.
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