Siemens Energy to Sell Indian Wind Turbine Unit
Siemens Energy AG is selling its Indian wind turbine business, a subsidiary of Siemens Gamesa Renewable Energy, in a strategic move to address ongoing losses and aim for profitability. The Indian unit, which generates $700 million in annual revenue, is valued at $1 billion. Barclays has been appointed to manage the sale process, and potential buyers include prominent players like Adani Renewable Energy, Brookfield Energy Transition Funds, Macquarie, Masdar, and TPG Rise.
The decision to sell the Indian unit aligns with Siemens Gamesa’s broader strategy to concentrate on core markets in Europe and the US. Despite divesting its Indian operations, Siemens Gamesa acknowledges the strategic importance of the Indian market and will continue to fulfill its service commitments there. This restructuring is part of a larger turnaround plan that aims to address quality and operational issues within Siemens Gamesa, with the goal of achieving break-even status by 2026, following an anticipated loss of €2 billion in fiscal year 2024.
The restructuring efforts are part of Siemens Energy’s broader initiative to fully integrate Siemens Gamesa and resolve the company’s existing challenges. This includes focusing on profitable markets and ensuring the efficient delivery of energy solutions across the value chain, such as power and heat generation, transmission, and storage. By streamlining its operations and concentrating on core markets, Siemens Energy aims to stabilize its financial performance and enhance its competitive edge in the renewable energy sector.
