Siemens to acquire remaining 50% stake in Flender, 23% stake in SI

New Delhi, July 25 (UNI) Siemens Ltd today said it will acquire the remaining 50 per cent stake comprising 2,160,000 equity shares of Rs 10 each after October 1, 2006, from Flender AG -- a subsidiary of Siemens AG Germany, for a consideration of Rs 72.5 crore.

The company will also acquire an additional 23 per cent stake in Siemens Industrial Turbomachinery Services Pvt Ltd (SITS), from Pimac Engineers Pvt Ltd, for Rs 5.6 crore, a statement said.

In May this year, Siemens had acquired 50 per cent stake in the company. Flender, which has a manufacturing plant in Kharagpur, West Bengal, is engaged in the manufacture of Industrial Gear boxes, couplings and has a Computer Aided Design Center at Chennai.

Earlier in April 2005, Siemens had acquired 51 per cent stake in SITS, which is engaged in the overhauling, maintenance and servicing of gas turbines in Bangalore.

Meanwhile, Siemens reported a 43 per cent jump in its net profit at Rs 57 crore for the third quarter ended June, 30, 2006, as against Rs 40 crore for the same period in the previous year.

''We have registered strong growth across key parameters with all our business segments performing well. Over the three quarters, we have invested about Rs 217 crore, to support our organic growth program, as well as M&A activities,'' Siemens Ltd MD Juergen Schubert said.

Sales turnover for Q3 stood at Rs 1,052 crore, up 76 per cent over the corresponding period last year.

While for the nine month period ended June 30, 2006, net profit rose by 49 per cent to Rs 223 crore.

The company's performance was driven by a steady growth in the normal businesses in the domestic market, combined with accelerated growth in exports. Power, Automation&Drives and Industrial Solutions&Services segments were the volume drivers.

The company's book order for Q3 amounted Rs 1,211 crore, during which the normal order inflow increased by a healthy 70 per cent.

Whereas, for the nine month period ended June 30, 2006, new orders jumped by 119 per cent to Rs 6,964 crore as compared to Rs 3,185 crore, for the corresponding period in the previous year.

Siemens Ltd, the flagship of the Siemens Group in India, is a leading provider of industry and infrastructure solutions in India with a business volume aggregating about Rs 5,400 crore.

It operates in the core business segments of Energy, Industry and Buildings, Information Technology, Communication, Transportation, Healthcare and Lighting. It has 17 manufacturing plants, a 500 strong network of channel partners, 12 companies, and employs over 14,500 people.

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