Sunil Mathur, the head of Siemens India, has reaffirmed the company’s principle of prioritizing profitability over growth. Despite the current uncertain environment, Mathur remains confident in the India story and Siemens’ role in it. Over the past 10 years, the company has demonstrated significant top-line and bottom-line growth, and Mathur believes that capital allocation is becoming increasingly critical to driving efficiency.
To enhance efficiency, Siemens India recently executed a major demerger of its energy business, allowing for sharper capital allocation. The company has invested over €1 billion in India, with an average annual capital expenditure of ₹200-₹250 crore, in addition to large working-capital commitments for a ₹26,000-crore order for 1,200 locomotives from the Indian Railways.
Mathur acknowledges that government infrastructure spending has been the main driver of growth in India, while private capital expenditure remains cautious. However, he notes that public projects have improved in both volume and execution, with 75-85% of budgets being implemented, compared to 30-40% earlier.
The railways sector remains a significant opportunity for Siemens, with Mathur highlighting the scale of India’s railway transformation over the past seven to eight years. The company operates around 25 manufacturing facilities and is expanding its mobility and smart infrastructure businesses, with the announcement of two new factories last year. Siemens is also investing in people, hiring 1,000-1,500 employees a year and reskilling them for digital roles.
Mathur believes that consistency and credibility are now India’s greatest strengths, and that this sentiment extends to Siemens’ global leadership. The company’s global board is upbeat and supportive of the India business, and Mathur is confident that Siemens will continue to play a significant role in the India growth story. With a turnover of ₹23,564 crore and profits of ₹2665 crore last fiscal, Siemens’ strategy of interlinking with the India growth story has delivered results and is expected to continue doing so. Overall, Mathur’s confidence in the India story and Siemens’ role in it is evident, and the company is well-positioned to capitalize on the opportunities presented by the country’s growing infrastructure and industrial sectors.