Siemens sees revival of pvt capex amid rising demand

Growth is supported by a strong order book in smart infrastructure and mobility businesses

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Sunil Mathur, managing director and chief executive officer, Siemens India

(MINT)

When Sunil Mathur was given a five-year extension two years ago, Siemens in India was already a compelling story. Today, with three years still left on his clock, the narrative has shifted from promise to proof.

The numbers speak plainly: revenue doubled at Siemens Ltd, as the Indian unit of the German conglomerate is named, margins tripled, the share price is up 380% over five years, and India is now ranked the fourth-largest country in Siemens AG's €78.9 billion (Rs 8.44 trillion) universe and, like several other MNCs, its fastest-growing market.

And now, after years of waiting, the one missing ingredient in India may finally be arriving for Siemens. The government's reductions in income tax and good and services tax (GST) rates are beginning to stir private consumption, and Mathur believes by April, the first real signs of a revival in private sector capital expenditure must be visible.