Siemens Energy AG has commenced the process of selling its wind turbine business in India, a subsidiary of Siemens Gamesa Renewable Energy, as part of a strategic effort to tackle losses and pursue profitability, as per reports. With annual revenues totaling $700 million, the Indian unit is valued at $1 billion.

Barclays is overseeing the sale process, and potential buyers include Adani Renewable Energy, Brookfield Energy Transition Funds, Macquarie, Masdar, and TPG Rise. This decision mirrors Siemens Gamesa's strategic focus on consolidating its presence in core markets across Europe and the US.

Despite facing challenges, Siemens Gamesa reaffirms its recognition of the strategic significance of the Indian market and pledges to uphold its service commitments in the region. The divestment forms a key component of Siemens Energy's broader strategy to seamlessly integrate Siemens Gamesa while tackling persistent quality and operational issues.

Siemens Gamesa aims to achieve break-even status by 2026, following an anticipated loss of €2bn in the fiscal year 2024. The sale has already attracted initial interest from infrastructure and climate funds, and strategic investors. Siemens Ltd, the Indian subsidiary of Siemens AG, recently announced the demerger of its energy business into a separate entity, Siemens Energy India Limited, which will have a separate listing.

Siemens Limited announces its pivot towards industry, infrastructure, and mobility technology, while Siemens Energy India Limited is set to concentrate on energy technology to aid customers in transitioning towards sustainability. The demerger and subsequent listing process of Siemens Energy India is anticipated to conclude by 2025, marking a significant step in aligning both entities with their respective strategic focuses.

The company is poised to provide an extensive array of solutions spanning the energy value chain, encompassing power and heat generation, transmission, and storage. Its product lineup will include a blend of both conventional and renewable energy technologies, featuring gas and steam turbines, as well as hybrid power plants utilizing hydrogen, alongside power generators, and transformers.