Siemens has agreed to acquire C&S Electric, one of Indian electric equipment manufacturers, for € 267m ($294.3m) to meet the increasing demand for low-voltage power distribution in India.

The New Delhi-based C&S Electric is a privately held company, which provides electrical and electronic equipment for infrastructure, power generation, transmission and distribution.

The transaction is expected to strengthen Siemens’ position as an important supplier of low-voltage power distribution and electrical installation technology in one of the world’s fastest-growing economies.

Under the terms of the agreement, the firm will purchase about 99% of the equity share capital of C&S Electric.

Siemens managing board member and Siemens Smart Infrastructure CEO Cedrik Neike said: “Safe, intelligent and reliable electrification is the backbone of economic and societal development.

“Joining forces with C&S Electric allows us to bring a more comprehensive portfolio that addresses the needs of a very important market.

“Siemens is committed to significantly improving access to reliable and efficient power supply in India.”

Siemens expects the partnership could lead to the establishment of a design and manufacturing hub in India

Siemens expects the partnership could lead to the establishment of a design and manufacturing hub in India to support the export of electrification solutions to fast-developing markets across the world.

As part of the deal, the firm will acquire the Indian operations of C&S Electric’s low-voltage switchgear components and panels, low and medium voltage power busbars along with its protection and metering businesses.

The owners will retain the other businesses of C&S Electric that include medium voltage switchgear and package sub-station, lighting, diesel generating sets,  engineering, procurement and construction (EPC) and the Eta-com busbars business.

Siemens said that the collaboration of the two companies is expected to improve its position in the business, allowing it to serve customers who require electrification in areas such as construction, industry, data centers, smart campuses and other city infrastructure.

Recently, Siemens Gamesa Renewable Energy (SGRE) has completed the acquisition of European service assets and Intellectual Property (IP) of Germany-based Senvion.