With focus on healthcare; the fund will be operational by March 2011.
Siemens Financial Services (SFS), the international financial services arm of German technology major Siemens AG, will soon begin full-fledged services in India. The company has sought banking regulator Reserve Bank of India’s (RBI’s) approval to establish a non-banking finance company (NBFC) for the purpose.
The size of SFS’s initial investment is not known, though Siemens executives said the focus of the fund will initially be healthcare.
SFS finances infrastructure, equipment and working capital investments on behalf of Siemens as well as business-to-business customers. It is active under four categories — commercial finance, equity investments and project finance, insurance and treasury and investment management. The Indian unit of SFS is expected to launch a large portfolio of financing options that cater to the diverse needs of the domestic healthcare sector.
“Right from the doctor who manages his clinic to corporate hospital chains, every category of healthcare provider can avail the services of our financial arm to acquire the latest Siemens products,” said D Raghavan, executive vice-president, Medical Solutions Division, Siemens.
He expects the SFS arm to start functioning after obtaining necessary regulatory approvals by March 2011.
SFS global website says the company supports Siemens sales with vendor finance solutions by professionally managing financial risks and opportunities on behalf of Siemens and by achieving profitable growth in external business in sectors with Siemens expertise.
Siemens Ltd, in which Siemens AG holds 55.18 per cent, is the flagship listed company of Siemens AG in India. The company is a leading provider of industry and infrastructure solutions with a business volume aggregating about Rs 12,000 crore and operates in the core business areas of industry, energy and healthcare.
The healthcare business of Siemens showed 39 per cent growth to touch Rs 753.74-crore as against the previous year’s Rs 543.1-crore during the year ended September 30, 2010. With availability of diverse financing options, the company hoped to continue its growth in the healthcare segment, the executive said.
