A consortium led by TPG, a leading worldwide alternative asset management company, has agreed to buy a 90% share in Siemens Gamesa’s onshore wind turbine generator manufacturing operations in Sri Lanka and India. Without revealing the purchase value, Siemens Gamesa stated in a statement that it will keep the remaining 10% of its wind business in India and Sri Lanka. Siemens Energy owns Siemens Gamesa, a wind power company. In addition to Siemens Gamesa’s ongoing investment, TPG will receive a sizeable minority investment from MAVCO Investments, a private business owned by a few members of the Murugappa family, the statement stated. Former JSW Energy CEO Prashant Jain will also acquire a minority ownership in the business as a Climate Change Partner.
Forming a New Independent Company
After the deal closes, a new independent business will be established to address the potential of the Indian wind market by creating a best-in-class business for the production, installation, and maintenance of onshore wind turbines. Onshore wind turbine production, installation, and maintenance in India and Sri Lanka are covered by the agreement. According to the statement, Siemens Gamesa will transfer about 1,000 workers and its current manufacturing facilities to India while continuing to grant the new business an exclusive licence for its technology and intellectual property and creating the next generation of goods. However, the business withheld the transaction’s financial information. According to Vinod Philip, a member of the Siemens Energy board who oversees Siemens Gamesa, the new business would better serve the Indian market and provide a long-term outlook for both consumers and staff. Siemens Gamesa may focus on other key areas while this guarantees ongoing support and growth in this thriving sector.
New Board Members
Vellayan Subbiah will chair the new company’s board of directors, while Prashant Jain will be its executive vice chairman. The Siemens Gamesa representative on the board will be Vinod Philip. The group believes onshore wind will continue to play an increasing role in India’s green energy mix, according to Ankur Thadani, Partner at TPG and Head of Climate, Asia. With the support of TPG and MAVCO, as well as Siemens Gamesa’s world-class product manufacturing and service offering, this new platform will continue to accelerate the delivery of gigawatts of clean power to millions of Indians across the socioeconomic spectrum. This partnership, as per MAVCO’s Vellayan Subbiah, will help India’s shift to renewable energy sources and boost the industry in the long run. With the government’s mandate for renewable energy and the necessity to meet the country’s constant electricity demand, Prashant Jain stated that the wind sector in India is at a turning point. The demand-supply imbalance and the importance of supply in the entire wind supply chain will only increase the nation’s need for high-quality wind turbine generator suppliers.
Siemens, founded in 1847, is a producer of radiology equipment primarily, with one of the dynamic histories. Siemens AG, (AG short for Aktiengesellschaft, is a German word meaning corporation,) a German engineering brand with its headquarters in Berlin and Munich, is the largest engineering company in Europe.
Siemens is divided into nine divisions, including Power and Gas, Energy Management, Mobility, and Financial Services, with Healthcare as a distinguished managed business.
Siemens is one of the top-notch heads in healthcare and medical diagnostics and radiology equipment, with its healthcare products generating about 12% of the company’s total revenue. It has a dramatic history, and here are some fun facts about Siemens and its history trivia curated for you.
Werner von Siemens and Johann Georg Halske- founders of Siemens
Siemens- History
Werner von Siemens, a German inventor, and Johann Georg Halske, a German master mechanic, founded Siemens (Siemens & Halske) on October 12th, 1847. Werner von Siemens, the co-founder of Siemens, founded the company based on his telegraph invention that implemented a needle to point to the right letter rather than the Morse code. Due to this, Siemens was initially referred to as Telegraphen-Bauanstalt von Siemens & Halske.
Werner von Siemens later discovered the first electric passenger train in 1879, the world’s first elevator in 1880. They helped invent the tubes with which Wilhelm Conrad Rontgen, the discoverer of the X-Ray, first examined them.
In 1919, S & H and two other companies cooperatively designed the Osram light bulb company.
During World War I in the ’20s and ’30s, Siemens developed radios, television sets, electron microscopes, and even designed aeroplanes.
During the final years of World War II, multiple plants and factories in Berlin and other significant cities were demolished by Allied air raids. To put an end to further losses, the manufacturing set-up was therefore pushed to alternative places and regions not directly impacted by the air war.
The aim was to attain continuous production of important war-related and basic products. As per reports, Siemens was functioning from almost 400 alternatives or relocated manufacturing set-ups, by the beginning of 1945.
In 1932, Reiniger, Gebbert & Schall (Erlangen), Phönix AG (Rudolstadt) and Siemens-Reiniger-Veifa mbH (Berlin) were integrated to form the Siemens-Reiniger-Werke AG (SRW), which again was combined in 1966 to form the present-day Siemens AG.
In 1972, Siemens sued German satirist F.C. Delius for his satirical portrayal of the company, through the book, Unsere Siemenswelt, and it was established that much of the book contained false claims. However, the trial itself disclosed significant participation of Siemens in the holocaust and other events in Nazi Germany. It is said that the company delivered electrical parts to Nazi concentration camps and death camps.
The factories had poor working conditions, where malnutrition and death were the ordeals of the day. Siemens businessman and Nazi Party member John Rabe is, however, received accolades for saving several Chinese lives during the notorious Nanking Massacre. He later visited Germany and talked about the atrocities committed by Japanese forces in Nanking.
The first cardiac pacemaker was founded and manufactured by Siemens and was inserted in a patient with severe cardiac arrhythmia on October 8th, 1958. Today, nearly a million pacemakers are installed worldwide.
About Siemens
The Bribery Scandal of Siemens
Siemens got embroiled in a worldwide bribery scandal in the early 2000s. One of them being the several deals carried out between the Greek government officials and the company during the 2004 Summer Olympic Games. A total of 64 individuals were found accused, including nationals from Germany and Greece.
In 2005, Germany disclosed investigations into Siemens business practices worldwide, driven by prosecutors in Italy, Liechtenstein and Switzerland. The US investigators were included in the investigation in 2006, however, they addressed violations only since 2001, when Siemens began to sell shares in a US stock exchange. The investigators discovered that bribing officials to acquire contracts was the standard operating procedure. Over that period, the company bribed around $1.3 billion to many countries and maintained different books to confine them.
Fines were established to be as high as $5 billion as the investigation further unfolded. Settlement negotiations took place through most of 2008 and when they were disclosed in December they were far less than what was anticipated.
The company paid about $1.6 billion, around $800 million in each of the countries of US and Germany. This was the biggest bribery fine in the history of that time. The money that was paid to Germany involved a $270 million fine paid the year before (concerning bribes paid in Nigeria).
The bribery system had further grown up within Siemens after World War II as Siemens attempted to renew its business by establishing itself in the developing countries, where bribery is common. Until 1999, in Germany, bribes were considered a tax-deductible business expense, and there were no laws concerning penalizing companies for bribing foreign officials. However, in 1999, the OECD Anti-Bribery Convention came into effect, to which Germany was a party member, and Siemens began to implement off-shore accounts and other means to hide its bribery methods. As the investigation unfolded, it was found that Siemens paid the highest bribes in Argentina, Israel, Venezuela, China, Nigeria, and Russia. This led to several prosecutions of Siemens employees and recipient countries and settlements with other governments.
Establishment of Siemens in India
siemens India
Siemens founded its India unit in 1922, but it was only after the country acquired its independence from British imperialism that it started expanding its business here. Motivated by the policies fostering industrial revolution by India’s first Prime Minister, Jawaharlal Nehru, Siemens built its first manufacturing plant in Mumbai in 1955. It began with a group of twenty-four workers functioning in a small workshop under the Mahalaxmi bridge.
A year later, it started its first full-fledged factory at nearby Worli, building switchboards using imported substances and a few basic types of machinery such as drilling machines and a power saw. Over the next few years, it started manufacturing healthcare equipment and railway signalling gear, as well.
By the mid-1990s, Siemens India had increased its number of divisions to eight as it moved its strategy from importing products to manufacturing them locally.
However, speedy expansion took its toll. In 1996/97, during its diamond jubilee year in the country, Siemens incurred a loss of Rs 84.5 crore. The company adopted certain tough measures to bring back the original profitability. It cut its employee strength from 8,500 to 4,000.
Today, Siemens has 20,000 employees working in 23 factories across India. In 2009, it launched the SMART strategy. SMART refers to simple-to-use, easy-to-maintain, affordable, reliable, and timely products. It is now one of India’s largest engineering brands with its annual revenue generated close to Rs. 13,000 crore.
The India unit is also the fourth-largest contributor to Europe’s largest engineering company, Siemens – after Germany, the United States and China, in terms of global revenue.
Werner von Siemens and Johann Georg Halske founded Siemens German Company.
When was Siemens founded?
Siemens German company was founded on 1 October 1847.
What companies are owned by Siemens?
Siemens Financial Services.
OSRAM GmbH.
Roke Manor Research Limited
Siemens Airfield Solutions, Inc.
Siemens Building Technologies Ltd.
What is Siemens famous for?
The company focuses on intelligent infrastructure for buildings and decentralized energy systems, on automation and digitalization in the process and manufacturing industries, and on smart mobility solutions for rail and road transport.
Siemens AG, headquartered in Munich, Germany is a worldwide technology powerhouse that commits to engineering brilliance, advancement, quality, credibility and internationality for over 170 years. Currently, there exists fifty-five Siemens subsidiaries enlisted under the German Commercial Code, with an annual turnover of 4.0 billion euros.
One of the world’s most significant manufacturers of energy-efficient, resource-saving innovations, Siemens AG is the pioneering producer of systems for power generation, transmission and healthcare excellence. In infrastructure and industry solutions, the company plays a leading role.
In the fiscal year of 2019, the Siemens Group generated revenue of €58.5 billion and acquired a net income of €5.6 billion. As of September 30, 2019, the company fostered 295,000 employees globally based on continuing operations.
Active globally, the company focuses on smart infrastructure for buildings and distinguished energy systems and catalyzes automation and digitalization in the manufacturing industries. Siemens integrates the digital and physical worlds for a sustainable environment of consumers and society.
Through Mobility, a prominent supplier of smart mobility solutions for rail and road transport, Siemens is aiding to rebuild the world market for passenger and freight services. Through its majority stake in its publicly listed subsidiary, Siemens Healthineers, Siemens is also a top-notch supplier of medical diagnosis and Al health services. Along with that, Siemens owns a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power listed on the stock exchange of September 2020. This article gives you an in-depth analysis of the topmost Siemens Subsidiaries and their annual turnover along with some of the most intriguing facts about these companies.
Siemens Subsidiaries around the World
Siemens Subsidiaries and their Importance in the Market
Siemens Corporation is a U.S. based subsidiary of Siemens AG, an international powerhouse addressing the areas of power generation and supply, smart infrastructure and multi-faceted energy systems. For over 160 years, the company has discovered and innovated technologies to aid the American industry augmenting manufacturing, energy, healthcare and infrastructure.
In 2018, Siemens USA generated a revenue of $23.7 billion, involving $5 billion in exports, fostering approximately 50,000 employees throughout all the 50 American states and Puerto Rico. In most of its activities, actions, and programs, Siemens Corporation aims to leverage the most of diversity because the company believes that diversity is one aspect that enhances its innovative capacity and the potential of Siemens’ employees through direct contribution.
Siemens Corporation states that diversity is the involvement and coordination of a vast range of thinking, backgrounds, experience, and expertise. Since 2005, Siemens has been bestowed with more than 100 diversity-related awards worldwide, including appearing on the 2019 Forbes Best Employers for Diversity list and being named the 2019 Corporate Equality Index.
Siemens Energy
The Siemens Energy Sector, founded on January 1, 2008, is one of the four divisions of Siemens. The company generates and supplies power from multiple sources, including the acquisition, transformation and transportation of oil and natural gas and renewable and alternative energy sources.
Siemens Energy is known to modify the transition to more sustainable, credible, and reasonable energy systems. With their advanced technologies, a clear emphasis on consumers’ needs, and more than 91,000 dedicated employees, the company caters to society’s power needs at a large scale. It has also been seen to participate in various altruistic and charitable activities. One of them being the reconstruction of Lebanon’s Ailing Power Sector after its massive 2020 blast.
After the deadly blast at Beirut’s port in August, various global organizations and companies rushed to provide support to the Lebanese city in ruins. One of them was Siemens Energy. In a statement, the German company offered to supply medical aid and to run two gas turbines with an electrical capacity of about 80 megawatts (M.W.) free of cost.
Siemens Healthineers
Siemens Healthineers AG (formerly Siemens Healthcare, Siemens Medical Solutions, Siemens Medical Systems) is the parent company for various medical technology companies with its headquarters in Erlangen, Germany. The company traces its early beginnings back to 1847, a small family business in Berlin, co-founded by Werner von Siemens. The name, Siemens Medical Solutions was adopted in 2001, which was later changed to Siemens Healthcare in 2008.
The history of Siemens Healthineers began in Berlin in the mid-19th century as a component of Siemens AG, the mother company. Siemens & Halske was founded by Werner von Siemens and Johann Georg Halske on October 12 1847.
The company was built around an invention of the pointer telegraph, by Siemens. Based on the telegraph, Werner von Siemens’ new innovation used a needle to point to letters’ chronology, rather than using the Morse code. The company, then identified as Telegraphen-Bauanstalt von Siemens & Halske, installed its first workshop on October 12. Eventually, the new company involved electromatic equipment and specialized in manufacturing medical technology.
Siemens Healthineers has contributed to various charitable events globally. The company has fostered programs such as the American Society for Clinical Pathology’s (ASCP) laboratory student scholarships, the PATH Ingenuity Fellows mentorship program, etc.
The company has also fostered different disaster relief efforts. In response to hurricane Katrina in 2005, Siemens Healthineers offered heart monitors and imaging equipment to Houston-area hospitals. Its parent company, Siemens AG, offered 100% of U.S. employee donations to the American Red Cross Disaster Relief Fund. Following the 2010 earthquake in Haiti, Siemens Healthineers offered medical equipment to augment healthcare heroes. The company also responded similarly in 2015 when a 7.8 magnitude earthquake struck Nepal.
Mentor Graphics
German tech-solutions company, Siemens declared its largest deal with an industrial software company since 2007 with Mentor Graphics‘ acquisition. Located in the United States, Mentor Graphics builds software that harnesses design and simulation of semiconductor chips implemented in automotive, aerospace, and other industries. Currently, has 5,700 employees and envisions to attain $1.22 billion in revenue in the future.
The purchase was struck at $4.5 billion. Siemens offers $37.25 per share to Mentor Graphics shareholders. Providing Mentor Graphics’ software to producers expects to become a prominent player in building automated-car technologies and other technologies that are expected to see growth within the next 20 years.
Conclusion
Siemens is setting its long-term value harnessing journey through effective growth and strengthened profitability with a primary and lenient company structure. The Vision 2020+ company strategy’s primary goal is to provide Siemens’ individual businesses significantly more entrepreneurial liberty under the strong Siemens brand to reconcile their focus on their significant markets.
Siemens – FAQs
What does Siemens company do?
Siemen’s one of the world’s biggest producers of energy-efficient and resource-saving technologies. They are also a pioneer in infrastructure and energy solutions, automation and software for industry and is a leader in medical diagnosis.
Who is the CEO of Siemens?
Roland Busch is the current CEO of Siemens.
Who is the founder of Siemens?
Werner von Siemens and Johann Georg Halske are the founders of Siemens.
