A major business transfer has been cleared as Siemens Ltd announced that its board has approved the slump sale of its low voltage motors and geared motors business to Innomotics India Private Limited for a cash consideration of Rs 2200 crore. The deal will be executed on a cash free and debt free basis, subject to agreed adjustments.
The approval was granted following recommendations from the Committee of Directors and the Audit Committee. Innomotics India is a subsidiary of Innomotics GmbH. The transaction will be subject to the fulfilment of standard conditions and required statutory and regulatory approvals, including clearance from the Competition Commission of India, if needed. The deal is expected to close by June 2026 and is likely to be completed within six to eight months from execution.
The business being transferred is involved in the design, development, testing, maintenance, repair, distribution, marketing, and sale of low voltage AC motors and geared motors. This includes motor ranges 1LE7, 1SE0, 1LA2, 1PQ0, 1LA8, 1PQ8, 1MB7, along with customized products 1PT0 and 1PC7. It also covers related customer services, spare parts, and ancillary products.
The transaction value was finalised after negotiations between Siemens and the buyer, based on two independent valuation reports dated September 30, 2025. These reports were prepared by Grant Thornton Bharat LLP and KPMG Valuation Services LLP.
For the 12 months ended September 30, 2025, the low voltage motors business reported revenue from operations of Rs 967 crore and a profit of Rs 35 crore. In the financial year 2023 to 24, the business recorded revenue of Rs 928.296 crore, total income of Rs 928.884 crore, and a negative net worth of Rs 17.56 crore.
During the same financial year, the business contributed 4.53 percent to Siemens Ltd revenue from operations and 4.31 percent to total income. Siemens Ltd reported a net worth of Rs 15210 crore, revenue from operations of Rs 20496.6 crore, and total income of Rs 21535.5 crore for FY2023 to 24. Shares of Siemens Ltd closed at Rs 3204.70 on December 8, down by Rs 119.60 or 3.60 percent on the stock exchange.
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