New Delhi: Siemens on Friday said it has inked an agreement to acquire 99 percent equity in New Delhi-based C&S Electric for around Rs 2,100 crore.

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"In a step to meet the increasing demand for electrification across industry, infrastructure and buildings in India, Siemens Ltd today (on Friday) signed an agreement to acquire New Delhi-based C&S Electric Ltd," according to a statement by Siemens.

Siemens will acquire about 99 percent of the equity share capital of C&S Electric for around Rs 2,100 crore (nearly EUR 267 million). Closing of the acquisition is subject to regulatory approvals, the statement added.

Representational image. Reuters

In the future, Siemens envisions this partnership to pave the way for the establishment of a design and manufacturing hub in India, supporting the export of electrification solutions to fast-developing markets around the world, it added.

The scope of the acquisition comprises the Indian operations of C&S Electric's low-voltage switchgear components and panels, low- and medium-voltage power busbars as well as protection and metering devices businesses.

The company's other businesses, such as medium-voltage switchgear and package sub-station, lighting, diesel generating sets, EPC (engineering, procurement and construction), and the Etacom busbars business will be retained by the owners.

C&S Electric has over 50 years of experience in India and will continue to operate under its own brand name.

The combination of the portfolios of the two companies will enhance Siemens' position in the business, enabling it to better serve customers requiring electrification in areas including construction, industry, data centres, smart campuses and other city infrastructure.

Cedrik Neike, member of the managing board of Siemens AG and CEO of Smart Infrastructure, said in the statement, "Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses the needs of an important market...This latest investment demonstrates our commitment to strengthening our offering in high growth markets in Asia."

Sunil Mathur, managing director and chief executive officer, Siemens Ltd, said in the statement, "The addition of C&S Electric's products, sales network, manufacturing units and a highly competent employee base will complement and strengthen range of Siemens' offering. This will bolster our portfolio not only in India but also for export."

RN Khanna, founder and chairman of C&S Electric, said in the statement, "Having been a leading participant in the Indian switchgear market since 1966, we are now delighted to be part of the Siemens family, an organisation that has pioneered and developed the switchgear market in India and globally for many decades."

C&S Electric has more than 5,000 employees across three main manufacturing locations — Haridwar, Noida and Guwahati — including a research and development centre in India.