Siemens Ltd To Up its Stake in SISL to 100%

Siemens Ltd has decided to increase its equity stake from 74.8 percent to 100 percent in the Mumbai based Siemens Information Systems Ltd (SISL). As a result, SISL would become a 100 percent subsidiary of Siemens Ltd, subject to receipt of all statutory and regulatory approvals. Juergen Schubert, MD, Siemens Ltd said, “As we have been stating, the company has surplus cash balance and we have been actively looking for investment avenues that would give us good returns. Given that Siemens Ltd already held nearly 75 percent of the equity, naturally we first considered investing back into our own operations. This also follows our strategy to complete and strengthen our portfolio. We recently invested in Siemens Building Technologies whereas we divested our stake in the Metering business, as part of the global strategy”. 

Anil Laud, MD, SISL said, “ IT is the backbone that links all businesses and Siemens Ltd’s decision to increase its stake to 100 percent is in line with the strategy to better optimize the synergies of both companies, to further enhance our offerings, providing quality projects while delivering value to our customers.” SISL has seven development centers that include Mumbai, Kharghar, Pune, Bangalore, Chennai, Gurgaon and Kolkata, and overseas liaison offices in USA, Germany, UK, Singapore, Sweden and South Africa. It employs over 1,400 employees. The Board of Directors of Siemens Ltd has decided to increase the Company’s equity stake to 100 percent in SISL, the IT arm of Siemens in India. Earlier Siemens Ltd. (India) had held 74.8 percent, while Siemens Nixdorf Information systems GmbH (SNI GmbH) Germany held the remaining 25.2 percent equity in the joint venture company that was set up in July 1992.

Siemens Ltd would acquire 1,715,000 shares of Rs 10 each of SNI GmbH in SISL for a total consideration of Rs 80 crore. This transaction is subject to all statutory and regulatory approvals. Since its inception in 1992, SISL has grown as systems integrators and total solutions providers. SISL has positioned itself in the areas of IT services, business consulting and management consulting with focus on verticals like healthcare, telecom, medical, transportation, automotive, utilities and media.