Industrial technology major Siemens Limited has approved the sale of its Low-Voltage Motors and Geared Motors business to Innomotics India Private Limited for ₹2,200 crore. The transaction will be executed through a slump sale and is expected to be completed by June 2026, subject to regulatory approvals.
What the Deal Includes
Under this agreement, Siemens will transfer its entire Low-Voltage Motors operations to Innomotics, including:
- Low-voltage AC motors
- Geared motors
- Spare parts
- Associated services
- Manufacturing and operational facilities
The business contributed ₹967 crore in revenue and ₹35 crore in operating profit in the 12-month period ending September 30, 2025.
Why Siemens Is Selling This Unit
Siemens has been restructuring its global portfolio to focus on high-growth, high-margin sectors.
The global motors and drives division (Innomotics GmbH) had already been divested in earlier years, making this India transaction a continuation of Siemens’ strategic shift.
The Low-voltage motors segment has relatively low margins, and Siemens aims to concentrate on:
- Infrastructure
- Mobility
- Automation
- Smart Industry solutions
These areas offer better long-term growth and profitability.
About Innomotics
Innomotics India is an emerging player in the industrial motors, geared motors, and drives segment.
Globally, Innomotics was acquired by KPS Capital Partners and has been expanding its presence in manufacturing, service networks, and motor technology.
This acquisition will significantly strengthen its foothold in the Indian industrial motors market.
Stock Market Reaction
Following the announcement, Siemens’ stock slipped 1.75%, indicating mixed investor sentiment.
Brokerage views:
- Positive: JM Financial termed the deal “value accretive,” raising its target price for Siemens.
- Concerns: Some analysts argued that the valuation appeared low and might impact minority shareholders.
What This Means for Siemens
The sale is expected to streamline Siemens’ operations and sharpen its strategic focus. Key outcomes include:
- More capital and management bandwidth for high-margin core businesses
- Strengthened focus on digital industries, automation, and smart infrastructure
- Better long-term growth potential in technology-driven sectors
What This Means for Innomotics
For Innomotics, this transaction is a major opportunity:
- Strong manufacturing capabilities inherited from Siemens
- A ready customer base across industrial sectors
- Improved ability to scale up operations in the Indian market
- Enhanced product portfolio in motors and drives
Challenges Ahead
Although strategically strong, the deal comes with certain challenges:
- Questions about valuation remain
- Regulatory approvals are pending
- Innomotics must scale production efficiently to meet demand
Outcome
The ₹2,200 crore sale marks a significant milestone in Siemens’ long-term strategy to pivot toward high-value, tech-driven sectors.
For Innomotics, it opens the door to becoming a leading player in India’s expanding motors and drives industry.
Both companies now stand at a crucial turning point — and the outcome will depend on how effectively they execute their growth plans over the next few years.
Source: Siemens Press
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