SISL transferred to parent Siemens AG for Rs 449 crore

MUMBAI: Siemens Ltd has announced that its wholly-owned IT subsidiary, Siemens Information Systems Ltd (SISL), will be transferred to parent Siemens AG for a consideration of Rs 449 crore. About 70 per cent of SISL���s revenues come from Siemens AG. The Siemens stock, which was hammered on Tuesday, was up 6.2 per cent at Rs 224.15 on the BSE Wednesday.

For the year ended September 2008, SISL had sales revenues of Rs 994 crore and a profit before tax of Rs 73 crore compared to revenues of Rs 1023 crore and profit before tax of Rs 160 crore in the previous year. The company attributed the fall in profit margins in the September ���08 fiscal to a change in its business model from an ���entrepreneurial��� one to a ���factory��� model that leverages India���s cost advantage.

In November 2008, the parent Siemens AG had created a central software facility under the umbrella of Corporate Technology department. Following this, the business of SISL was aligned with this department to serve a dual mandate -- serve as a software factory for Siemens AG���s R&D and product development initiatives globally and also as an offshore development centre for the Seimens IT Solutions and Services group, which caters to external customers.