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Home arrow News arrow Business News arrow Siemens expects new orders worth INR 1 tr from global stimulus programs
Siemens expects new orders worth INR 1 tr from global stimulus programs Print E-mail
Written by Ravi, Stefan   
Tuesday, 23 June 2009
Munich: Siemens expects to win new orders of around INR 1 trillion in the next three fiscal years 2010 until 2012, which will be generated by government stimulus programs already announced around the world. Green technologies are expected to account for 40 percent or approximately INR 400 billion of this total, which will significantly increase the share of the company’s revenues from its environmental portfolio in the future. Siemens based this forecast on an initial systematic analysis of the largest stimulus programs.

"With their programs, governments worldwide are sending the right signal. Against the backdrop of the worst global economic crisis in decades, these government measures are at least partially cushioning, in some cases, sharp declines in private-sector demand. They should also have a stabilizing effect on our business," said Siemens President and CEO Peter Löscher.

Siemens, with more than 50 years of incorporation in India has a strong and well established presence across the country. Today, over 17,000 employees work across various offices and factories in the country. “Over the years, we have emerged as the leading provider of infrastructure solutions in India with a robust and innovative product portfolio in all three sectors of industry, energy and healthcare. About 25 percent of power in India is installed with Siemens technology, whereas, in the Healthcare sector, we lead the market by continuously introducing the latest technologies. “said Dr. Armin Bruck, Managing Director, Siemens Ltd

Siemens has continued with its investment plans and focused on strengthening the local manufacturing base. In the last two years, Siemens has added three new factories in the energy sector alone. “Our constant focus is to bring world-class and high technology products to India,” added Dr Bruck. Siemens has commissioned India’s first and the longest 2,500MW HVDC transmission system over a distance of 1450 km starting from East to South (Talcher-Kolar). Recently, the Company also bagged a contract from Adani Power to construct India’s first private sector High-voltage-direct-current (HVDC) system.

"In addition, the government programs will safeguard jobs worldwide. The large portion of the investments in environmental technologies will probably create new green jobs as well. This applies particularly to the green infrastructure giant Siemens," Löscher added.

To overcome the global economic crisis, stimulus programs of around INR 130 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or some 47 trillion – is slated for investment in infrastructure projects. The remainder is accounted for by tax cuts, for example, and other governmental non-infrastructure related measures. The total volume of planned infrastructure expenditures relevant for Siemens comes to about INR 10 trillion globally. Given the company’s current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of around INR 1 trillion, of which approximately INR 400 billion will likely come from environmental technologies. In fiscal 2008, Siemens’ environmental technologies generated revenue of around INR 1.3 trillion. The company intends to increase this figure to INR 1.7 trillion a year by 2011.

At slightly more than INR 5.7 trillion, the share of the U.S. stimulus program relevant for Siemens represents the largest share of the worldwide total. China is in second place with a Siemens-relevant share of around INR 1.7 trillion, followed by Germany with a share of some INR 330 billion. In many of the worldwide stimulus programs major parts of the amounts are earmarked for green technologies. For example, investments in green technologies account for nearly 50 percent of the Siemens-relevant share of China’s stimulus program and for about 60 percent of the corresponding share of Germany’s stimulus program. “The various governments are strongly focused on sustainable investments. Siemens can help other countries to reach their climate protection targets, especially in close partnership with the local communities,” said Peter Löscher.

Siemens has strong roots in the majority of its local markets – and has had, in most cases, for over 100 years. Local value-added, a reputation as a respected and important employer and the social commitment of the company and its local employees make Siemens a trusted and valued partner in regions all around the world. The company has already been involved in helping to build the infrastructures in many countries, now working to revive their economies through additional investments in these areas.

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