Siemens Ltd is consolidating its three Indian iron and steel business units into one. According to sources, it would be called Siemens Metal Technologies Group under its industry sector vertical.

This consolidation exercise, a part of the global and local restructuring, is primarily driven by mergers of the company's 100 per cent subsidiary, Simens VAI Metals Technologies Pvt Ltd (SVAI) and Morgan Construction Co India Pvt Ltd, a wholly-owned subsidiary of SVAI.

Kolkata-based SVAI is an EPC outfit for iron and steel plants. Mumbai-based Morgan Construction's expertise lay in designing and erection of steel wire rod and bar mills. These two apart, Siemens Ltd had a division engaged in steel pant-related electrics and automation activities. “All these would now be brought under the SMT Group,” a top company official told Business Line.

Technical guidance

The SMT Group, within Siemens Ltd, will have over 1,000 staff on its rolls and have its operating nerve centre in Kolkata. It has been decided that though administratively the Group will report to Siemens India's headquarters in Mumbai, it would draw technical guidance from Siemens metal technology headquarters in Austria.

The Group is being groomed as a hub for iron and steel related plant building businesses in the BRICS markets.

It would have a manufacturing base in Visakhapatnam on a 30-acre plot. “The 200-employee unit will be ready before December next year at a cost of around €30 million,” the official said.

The Group's service/product basket currently comprises small electric arc furnaces, ladle furnaces, vacuum degassers, billet casters, circular pallet plants and sinter coolers. It will work 95 per cent indigenisation principle.

jayanta_mallick@thehindu.co.in

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