Siemens Ltd has acquired controlling stake in Chennai-based building solution provider iMetrex Technologies for an undisclosed sum.
The Indian arm of German conglomerate, Siemens AG is planning to expand its research and development centre for building and automation solutions. “The acquisition will give us a strong base in India particularly in manufacturing and R&D facilities. iMetrex facility will provide access for Siemens in R&D and manufacturing space and later will be Siemen's facility for R&D,” Siemens Managing Director Jurgen Schubert said.
As per the agreement, Siemens will buy 77 per cent holding in iMetrex with an option to acquire the remaining stake in the next five years.
iMetrex is providing solutions for electronic security, safety and building automation systems with operations in UK, Ireland, Singapore, and Hong Kong. The company's revenues during the last fiscal stood at posted Rs 161 crore and it employs 620 people.
The acquisition will help Siemens access to niche research and development facilities of the Chennai firm and its manufacturing facility besides electronic security and fire safety solutions domain, Schubert said.
The company is planning to merge its building technology division with iMetrex. Siemens currently employs 160 people in its building technology division.
"iMetrex will be a subsidiary company and the revenues will reflect in our balance sheet starting from this year itself," said Siemens Executive Director and CFO Patrik de Royer.
Siemens is the leader in Indian building and automation space with 20 per cent market share, where global players like Honeywell and ABB are fighting for a better access. Analysts said that India's building and automation industry is growing at 25-30 per cent rate as the building and construction works are progressing aggressively.
Siemens on Monday announced 8.29 per cent drop in quarterly profits at Rs 108.1 crore as against Rs 117.83 crore posted a year ago.
Total income increased 82.15% to Rs 21,40.9 crore for the quarter ended March 31, 2007 from Rs 11,75.32 crore for the corresponding quarter, last year.