New Delhi, Delhi, India:
The acquisition of the Low Voltage Switchgear and Busbar businesses of C&S Electric India by Siemens Limited (Siemens India) was announced in January 2021, and was successfully closed on 1st March, 2021 after completion of all statutory and other requirements. Siemens has acquired 99.22% stake of ‘C&S Electric India’ from its former promoters for approximately Rs.2100 crores (approximately EUR 267 million). With the acquisition of one of India’s leading providers of electrical equipment for generation, distribution and final consumption of electricity, Siemens Limited (India) hopes to strengthen their position as a key supplier of power distribution and electrical installation technology in India, one of the world’s fastest-growing economies.
The businesses excluded from this transaction have been consolidated by C&S Electric’s former promoters- “the Khanna family” under a new company by the name of ‘Trimaster Private Limited’. ‘Trimaster Pvt Ltd’ will now focus on growing and transforming their major retained businesses. The former promoters of C&S Electric were supported in this transaction by the legal firm S&R, investment bankers Ambit, and tax advisory firm Transaction Square. Commenting on the closure of the C&S Electric transaction with Siemens Limited, Mr. RN Khanna, Founder and former Chairman of C&S Electric India said, “Anuj, Rishi, and Aditya were given independent charge soon after joining C&S in 1998. Building on the solid initial base which they inherited, they created a world class organization serving some of the most demanding customers with sincerity and creativity, which was much appreciated by a global leader like Siemens. They have equally enthusiastic and creative ideas for ‘Trimaster’s businesses which are backed by strong management teams and technical capabilities. I wish all the employees of ‘C&S’ moving with the acquisition, and the incoming management team, as also the ‘Trimaster’ teams, the very best.”
‘Trimaster’ is currently managed by the three Managing Directors Anuj, Rishi and Aditya Khanna who have steered the ‘C&S Electric’ group founded by Mr. RN Khanna and Mr. Ashok Khanna in 1966, since the early 2000’s. The turnover of the ‘Trimaster Group’ currently stands at approximately Rs.600 crores. The former ’C&S Electric’ promoters have extensive plans to deploy proceeds from the divestment to Siemens towards growth of these businesses under the Trimaster Group of companies. In the lighting and medium voltage businesses – Trimaster’s subsidiary companies retain the right to use the C&S brand name for a period of one year post the acquisition.
Trimaster’s MV Voltage Switchgear business will be executed through its wholly owned subsidiary ‘C-sec Technologies Ltd.’ ‘C-sec Technologies’ has already established itself as one of the market leaders in the high technology product segment of Ring Main Units (RMU) for secondary power distribution in India. ‘C-sec’ intends to expand its range of primary distribution switchgear in the upcoming months and use the ‘C-sec’ platform to offer multiple services and products to Discoms across India, which are its major customers. ‘C-sec’ products are installed in over twenty different electrical utilities and Discoms around the country, and in more than ten important Utilities overseas. ‘C-sec’ aims to be a partner to the Indian Discoms in the quest to become completely “Atmanirbhar” in new and upcoming utility technologies for smart city developments.
‘Trimaster’ will also transition their lighting business line from the ‘C&S Electric’ brand into the ‘True North’ company (a wholly owned Trimaster subsidiary) over the next 12 months. The lighting industry within the country currently stands at approximately Rs.20000 crores today, and is experiencing exponential growth, with further expectations of growing more in the future owing to the low saturation level of the Indian lighting market. Commenting on this transition of ‘C&S Electric’s lighting product business into ‘True North,’ Mr. Vivek Sharma, former MD of Panasonic India, and presently a Professional Coach and advisor to Trimaster Group said, “From our past sourcing experience with C&S, their commitment to manufacturing excellence in terms of innovation, design, quality, durability and reliability is world class. Looking at the investments the group is making into that business, and considering the creativity, technical competence, drive and passion displayed by their team for the Lighting business, the writing is on the wall. The ‘C&S Lighting’ business in its new avatar as ‘True North’ will achieve greater heights in the industry within a very short span of time.”
‘Trimaster’ is also deeply committed to their joint venture (JV) company ‘CSH– C&S Himoinsa’ – which is a JV with the Yanmar Group of Japan for manufacturing diesel gensets for the ever-growing Indian and South East Asian markets for stand-by power solutions. With Indian businesses increasingly transitioning towards being present in the online space, the promoters of the Trimaster group also foresee several new opportunities for their other joint venture company ‘RS components’ – a JV with the Electro component group (UK) for online and catalogue based distribution of industrial products.
In retrospect, what makes the achievements of the former promoters of ‘C&S’ stand out is the fact that the LV switchgear business in India was dominated largely by the multi-national companies, but ‘C&S’ was able to create indigenous technology and carve out a space in the domestic and international markets based on their independent technical innovations. In the space of Power Busbars, ‘C&S’ grew to become the leading Indian manufacturer and one amongst the global leaders serving diverse markets from power generations plants, to data centres around the world. Commenting on this recent acquisition of ‘C&S Electric’ from the ‘Trimaster Group’ promoters at the time of signing of the deal, Mr. Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd. had said, “The addition of C&S Electric’s products, sales network, manufacturing units and a highly competent employee base will complement and strengthen the range of Siemens’ offering. This will bolster our portfolio not only in India, but also for export to competitive international markets in line with our growth strategy.”
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