Germany-based electric motor and large-drive systems maker Innomotics GmbH looks to deepen its India presence as it enters the final leg of the proposed acquisition of Siemens Ltd's domestic low-voltage motor business, according to a top executive at the company.
“This more or less completes our portfolio and the carve-out from Siemens in a long-planned exercise. It makes us much stronger in India,” chief executive Michael Reichle told Mint.
In December, Innomotics announced that it would acquire Siemens' low-voltage and geared-motor business in India for ₹2,200 crore. The deal is expected to close in June this year.
The acquisition is a part of the manufacturer's long-term plan to bring its core business lines into the fold, since its split from Siemens in 2023. Innomotics was acquired by New York-based private equity firm KPS Capital Partners in 2024 in a transaction valued at €3.5 billion (approximately $3.8 billion).
The acquired business posted operating revenue of ₹967 crore and profit from operations of ₹35 crore for the year ended September 2025.
Manufacturing Push
The deal comes at a time when India is seeing a manufacturing wave across industries, and the country aims to raise its manufacturing sector's share of GDP from 17% to 21% over seven years. Innomotics expects this to drive demand for industrial motors and automation systems.
The company, which works with players across mining, steel, oil and gas, and water, expects its India business to grow at around 8% annually post-acquisition, with the country currently contributing about 6% to its global revenue. The company's annual revenue exceeded €3 billion in 2024.
The CEO said the mining sector was leading the charge in adopting electric motors into its workflows, followed by the metal production sector. “There's a huge demand for minerals, followed by metal production for infrastructure buildout that's currently happening in the country.”
While the oil and gas market has been comparatively slow to adopt electric motors, Innomotics' clients are making a concentrated push to move to electrified motors.
A key focus area is “local-for-local” manufacturing, scaling production in India while integrating local procurement into global supply chains, Reichle said.
“We're localising our manufacturing lines here…On the one hand, we want to scale up the business lines that we manufacture in the country. Secondly, we want to use the procurement setup from the local production line internationally,” he said.
While the company declined to provide details on its India order book, it said that its manufacturing facilities were operating at full capacity and that it was on track to beat its targets for the first half of the current year.
Globally, the industrial motors market was valued at $21.29 billion in 2024 and is forecast to reach $28.17 billion by 2029, growing at a compound annual growth rate of 4.8%, according to Mordor Intelligence, with Asia-Pacific commanding nearly 52% of the demand.