Siemens is betting big on India as it sees signs of revival of private capital expenditure in India, according to the company’s top officials. Siemens on Thursday announced the opening of four digitisation centres in India.
“We are beginning to see private capital expenditure coming back into the system. These are more than just greenshoots,” said Sunil Mathur, managing director and chief executive officer for Siemens India.
India’s private capital expenditure has been muted for the last three to four years time, largely owing to less than anticipated demand and over-capacity. Mathur added, the company has seen inquiries and a revival in private capital expenditure in some segments.
Siemens on Thursday launched four MindSphere Application Centres. “The centres will be located in Pune, Noida and two in Gurgaon. Siemens is the first company worldwide to set up 20 of these centers for digital customer applications in 17 countries,” the company said in its statement.
“This( India) market has picked up momentum,” said Dr. Roland Busch, Chief Technology Officer and Member of the Managing Board of Siemens AG.
At present, for Siemens India orderbook, contribution from the private sector remains stable in the 40% to 60% range, company officials added. Of this, Mathur added, there are two large projects of more than Rs'1 billion value which the company has won from the private sector in the current financial year. The two orders, he added, were won from the power and mobility segments.
In terms of sectors, Mathur explained there are signs of revival seen in the automobile and pharmaceuticals segment.In addition, he said there are inquires for private sector expansion from both the steel and cement, which are the main indicators of infrastructure growth.
For the power sector, Mathur added, India’s existing power capacity may need modernization. In addition, with stressed assets going through an insolvency process, the country will need to add more capacity and thus create a market for large projects. He added, power transmission and distribution will also add new opportunities.
“There are large project opportunities. The question now is how soon they will turn into tenders,” said Mathur on whether there is a pickup in large project orders.