Siemens is planning to restructure the its loss-making low-voltage distribution systems business. As a part of this move, the company is attempting to redeploy the apart of the workforce in the neighbouring metering factory owned by the company.
"Unfortunately, there are delays in implementing the measures and this is adding to the delays. The trade union is not entirely convinced about the move but I remain hopeful about convincing them," said J Schubert, managing director, Siemens at a press conference today.
The low voltage distribution business has been affected by the downturn in the economy especially the lack of power sector reforms. Matters have been compounded due to the presence of a large number of players which has resulted in excess manufacturing capacity.
Meanwhile, the German parent Siemens AG has hiked its stake in Siemens Public Communication Networks to 82.4 per cent from 70 per cent. The company was a 70:30 joint venture between Siemens AG and Siemens Ltd. "Our holding now stands reduced to 17.6 per cent," said Schubert.
This company was formed by the hiving off of the telecom business of Siemens Ltd into a joint venture with Siemens AG as a part of the restructuring process of the company.
