German multinational conglomerate Siemens is taking over the electric vehicle unit of Mumbai-based Mass-Tech Controls as the company aims to better serve the rapidly expanding EV market in the country.
Acquisition agreement
According to the press release, Siemens inked the acquisition deal on May 19. With that, the company committed to investing approximately €4.3 million (Rs. 380 million) in the Indian charging infrastructure company, which designs, develops, and produces AC chargers and 30-300kW DC chargers for EVs.
It must also be noted that the purchase consideration is cash- and debt-free, which can also be adjusted if agreed by both parties.
In addition, the company statement also highlighted that the acquisition must close per the parties’ agreed-upon condition precedents and be granted all necessary regulatory, statutory, and other clearances.
Thereafter, Siemens Limited’s Smart Infrastructure Business will completely integrate Mass-Tech Controls’ EV unit into its e-Mobility Business Unit.
“We are extremely delighted with the acquisition of our business by Siemens, one of the most well-recognized and respected organizations globally. Electric vehicle solutions from Mass-Tech Controls will perfectly complement and strengthen Siemens’ own existing portfolio of electric vehicle charging infrastructure solutions, helping provide higher value to customers.”
Subhash Patil, Mass-Tech Controls Private Limited’s Chairman and Managing Director
Purpose of the acquisition
As mentioned above, Siemens aims to solidify its capacity to meet India’s fast-growing demand for EV charging infrastructures. In effect, the company can expand its local market footprint and establish an export hub.
In addition, the company also aims to boost its range of e-mobility technologies in the country, which aligns with its global product portfolio.
See Also:
- Siemens eMobility to launch an EV charger factory in Texas
- KORE Power announces initial $75M close of $150M round with lead investor Siemens
- Siemens to supply EV chargers for Electromin’s planned charging network in Saudi Arabia
- Volta Trucks and Siemens partners to accelerate commercial fleet electrification
- Siemens Gamesa launches RecyclableBlade for onshore wind projects
This takeover is crucial for the German company as the Indian market implements unique standards like “lower power rating and parallel charging,” Simens noted.
“The fast-evolving e-mobility infrastructure market in India is important for Siemens due to its high growth potential. The enhanced portfolio will enable Siemens to meet market requirements such as homologation and local value-add with cost-competitive solutions.
With this acquisition, we now have a strong platform to address our customers’ needs with locally designed and produced products.”
Markus Mildner, eMobility CEO at Siemens Smart Infrastructure
Undoubtedly, the Indian government’s FAME-II policy and other state-wide initiatives have encouraged a trajectory in the Indian EV market, as demonstrated by this major buyout.
