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Siemens Outlays Rs. 1,000 Cr. CapEx Plans in India

Siemens logo

Siemens Ltd. has approved a CapEx of about Rs. 519 crore in India, which will be invested in the company’s facilities in Goa and Aurangabad.

This supplements the company’s earlier investment approval of Rs. 416 crore, given during Q1 of FY2024*. As per Siemens’ press release dated 14th May 2024, “With this, total Capex investment is expected to exceed Rs 1,000 crore”.

*Siemens Ltd. considers 30th September as its financial year-end. Therefore FY2024 as per the company refers to the period between 1st October 2023 and 30th September 2024.

Siemens’ 519 Cr. CapEx to Further Switchgear Production, Develop Metro Train Manufacturing Unit

Siemens Approves its Largest Investment yet in Goa

Siemens has approved an investment of Rs. 333 crore towards the expansion of its Smart Infrastructure Operations facility in Goa, which will be its largest yet CapEx in the state. This expansion is expected to be complete by December 2026, and it entails enhancing Siemens’ Gas Insulated Switchgear (GIS) and Clean Air Switchgear (Blue GIS) production.

Siemens Gas Insulated Switchgear
Siemens Gas Insulated Switchgear

A report by Moneycontrol dated 14th May 2024 adds that through this investment, Siemens targets a manufacturing capacity increase of 23% at its Goa switchgear facility. The report adds that Siemens will fund this expansion using its internal accruals.

The company’s release mentions that this investment is driven by ‘the rapidly increasing need for critical components of the industry, infrastructure and power distribution sectors’.

Siemens Blue GIS switchgear are essentially Air Insulated Switchgear which make use of a ‘Blue Switch’, which is a 3-position switch disconnector with a vacuum interrupter. These switchgear eliminate the use of any Flourine-derived gases like Sulphur hexaflouride which is a greenhouse gas and can contribute to polluting emissions. The company emphasised in its release that Blue GIS would help companies in sectors such as data centre, Oil & Gas, Steel, Transmission and Distribution (T&D) and metro rail to fulfill their sustainability goals.

Metro Train Manufacturing Unit to Come Up in Aurangabad

Siemens has given approval to an investment of Rs. 186 crore to develop a metro train manufacturing unit in Aurangabad. This unit is expected to be commissioned in FY-27.

The company already has a factory in the same location which is engaged in the manufacturing of bogies for trams, locomotives, Electric Multiple Units (EMUs) and metros. “Going forward, the facility will play a key role as an export hub for Metro Turnkey projects, mentioned Siemens’ release. The new unit will serve markets in Australia, Middle-East and Asia.

Moneycontrol’s aforementioned report states that development of the Aurangabad metro train unit will be financed through Siemens’ funds.

Goa & Aurangabad Factories Designed per LEED Gold Standards, Carbon-Neutral & Water Positive

Siemens’ GIS and Blue GIS manufacturing facility in Goa, and the upcoming metro train unit at Aurangabad have been designed as per Leadership in Energy and Environmental Design (LEED) gold standards. LEED is a green building certification system by the US Green Building Council.

Further, these facilities will be carbon neutral and water positive, and they will be equipped with solar panels, EV chargers and Battery Energy Storage Systems (BESS).

Commenting on this development, Mr. Sunil Mathur, MD and CEO of Siemens Ltd., said, “We believe that with the latest investments, our largest in recent years, we will be able to better address customer requirements with a stronger portfolio and go-to-market. It is further evidence of the strong commitment of Siemens towards India and will help leverage the full potential of the fast-growing Indian market.

Siemens to Expand Kalwa Power Transformer Factory & Goa Vacuum Interrupter Plant

Siemens Power Transformer

As per a press release dated 28th November 2024, Siemens had accorded approval to a Rs. 416 crore investment for expanding manufacturing capacity of power transformers and vacuum interrupters. This information was reiterated in the company’s release from 14th May 2024 adding that this CapEx is targeted towards Siemens power transformer facility in Kalwa, Maharashtra, and its vacuum interrupter manufacturing facility in Goa.

Separately, Siemens’ May 2024 corporate presentation mentions that the company targets to double its power transformer manufacturing capacity to 30,000 MVA by FY-25 from 15,000 MVA in FY-23.