Siemens software arm likely to bag Rs 250 crore order

Siemens Information Systems (SISL), the Rs 300 crore software development arm of Siemens India, is set take off with a mega Rs 250 crore order, expected within a week from an European government.

Also, the German conglomerate, having decided to consolidate its global software business into SISL, has placed four directors from parent Siemens AG on SISL board.

SISL has also picked up a 49 per cent stake in a Siemens group BPO outfit—Siemens Shared Services Pvt Ltd, a subsidiary of the US-based Siemens Shared Services, for Rs 3 crore. The acquisition is aimed enhancing SISL’s presence in the upcoming BPO space. The company is also scouting for inorganic growth opportunities and is open to acquiring banking and finance services sector units.

Anil Laud, managing director of SISL, said, “We have been growing at steady rate of 17 per cent. Now with our new plan of action in place, our growth rate from the current year onwards would easily be in the range of 30-50 per cent. We are in talks with software companies specialising in banking and finance for acquisition.”

SISL’s order book (unexecuted order value) as on September 31 stood at Rs 159.2 crore.

Laud refused to comment on the new Rs 250 crore order but sources close to the development said that SISL is close to bagging the mega deal from an European country and the deal is expected to be signed within a week.

Around 15 per cent of SISL’s turnover comes from domestic market while export market accounts for around 85 per cent. “Most of our exports are in Euro and we are well positioned to capture the benefit of Euro appreciation,” Laud explained.

Siemens AG top guns to join SISL board include Erich Reinhardt—group president Siemens medical solutions, Friedrich Froeschl—head corporate information and operations, Anton Huber—vice president and member of the board (automation and drives) and Brend Regendantz—vice president and member of the board (Siemens Business Services). They are, however, not members on the board of Siemens India.

The group’s global sofware operation is structured under Siemens Business Services which reported a revenue of around euros 5.77 billion (around Rs 29,000 crore).