Siemens Limited will sell its Low Voltage Motors business to Innomotics India Private Limited for a cash consideration of ₹22 billion. The deal, structured as a slump sale, includes designs, research, development, and sales of low-voltage AC motors. The transaction is expected to close within 6-8 months, pending regulatory approvals. This decision enables Siemens to optimize its portfolio as a strategic lever.
Divesting Motors Segment
Siemens Limited has approved the sale and transfer of its Low Voltage Motors segment to Innomotics India Private Limited, a subsidiary of Innomotics GmbH. The business includes design, research, development, and sales of low-voltage AC motors, geared low-voltage motors, customer services, and spare parts.
Deal Terms and Rationale
The sale will be executed as a slump sale for a cash consideration of ₹22 billion (Indian Rupees Twenty-Two Billion), on a cash-free, debt-free basis, subject to mutually agreed adjustments. The decision to sell the business comes after considering the limited synergies with Siemens’ other operations. The company will focus on further strengthening its position as a leading technology-focused company.
Closing Timeline
The transaction is subject to customary conditions precedent, including receipt of requisite regulatory and statutory approvals. The company expects the sale to close in 6 to 8 months from December 8, 2025.
Financial Details
For the twelve months ended September 30, 2025, the Low Voltage Motors business recorded revenue from operations of ₹9.67 billion and profit from operations of ₹0.35 billion. This represented 6% of Siemens’ revenue from operations and 2.2% of profit from operations (excluding the Energy business which got demerged effective March 1, 2025).
Strategic Alignment
The sale aligns with Siemens’ strategy to optimize its portfolio and focus on high-growth technology areas. The company said the deal will enable it to optimize its portfolio as a strategic lever, creating value and cash for the Company. Given that Innomotics GmbH already controls the intellectual property rights for the motors business, this divestiture is a logical step.
Source: BSE
