Siemens Energy to sell Indian wind turbine unit amid profitability push

The sale is part of Siemens Energy's broader effort to integrate Siemens Gamesa fully

In a strategic move to stem losses and return to profitability, Siemens Energy AG is putting its India wind turbine business, part of its subsidiary Siemens Gamesa Renewable Energy, up for sale. According to Mint citing people aware of the matter, the Indian unit, which generates annual revenues of $700 million, is valued at $1 billion. Barclays has been appointed to manage the sale, and potential buyers include Adani Renewable Energy, TPG Rise, Brookfield Energy Transition Funds, Macquarie, and Masdar.

The decision aligns with Siemens Gamesa’s turnaround plan, focusing on core markets in Europe and the US. Despite challenges, the Indian market remains strategically important for Siemens Gamesa, which will continue to fulfill its service obligations there.

This sale is part of Siemens Energy's broader effort to integrate Siemens Gamesa fully and resolve ongoing quality and operational issues. The company aims to break even by 2026, following a projected loss of 2 billion euros for fiscal 2024. The sale process, launched recently, has seen initial interest from infrastructure and climate funds, as well as strategic investors.

In related developments, Siemens Ltd, the Indian arm of Siemens AG, recently announced the demerger of its energy business into a new entity, Siemens Energy India Limited, to be listed separately. This move will create two focused entities better positioned to serve their respective markets.