Siemens AG said it plans to invest Rs1,800 crore ($346 million) over the next three years in India,  mainly in  the renewable energy market, the company said in filing to the  Bombay Stock Exchange today.

Europe's biggest engineering conglomerate will be investing Rs500 crore over the next three years to build high end technology wind turbines for the Indian market. The first of these turbines is scheduled to be shipped in 2012.

''Our goal is to strengthen our position as the leading provider of green infrastructure solutions in India's booming market'' said. Peter Loescher, president and CEO of Siemens AG.

Siemens, based in Munich, Germany plans to make India a major centre for value-priced products by establishing six new hubs in India, responsible for the design, development, production and sale of these products for India and for the world market.

The company said that it wants to increase its market share in India to 10 per cent by 2012 and thereby generate a total revenue of about Rs8,500 crore by fiscal 2020 with value priced products from India.

Siemens AG expects the Indian economy to grow at 7 per cent in 2010 and 8 per cent in 2011 and wants to expand its market share to 10 per cent by 2012.

Peter Löscher president and CEO of Siemens AG

"Like many other nations around the globe, India is facing a green revolution. We have the products and solutions for the country and we want to further expand our position as a green infrastructure provider in India," said Peter Löscher, president and CEO of Siemens AG in a statement.

"India is already one of the growth drivers worldwide and will remain so in the future. We've been optimally positioned here for over 140 years and intend to further strengthen our position," Peter Löscher, Siemens' chief executive said in a statement.

The company said in-order to support its growth plans, it will increase its workforce in India from 17,000 to 25,000 by 2012.

Siemens has already invested Rs275 crore for capacity expansion at its steam turbine manufacturing facility at Vadodara, Gujarat. The expansion programme scheduled to be complete by this tear will triple the manufacturing capacity at the factory. (See: Siemens to triple steam turbine capacity in India)

The company had invested Rs30 crore to set up a modern, world-class steam turbine factory at Vadodara, which was operational in January 2007. The setting up of a greenfield factory was announced by the company in 2006 in its 50 years of manufacturing presence in India.

Siemens in India, which comprises 20 legal entities, is a leading provider of industry and infrastructure solutions with a business volume aggregating about Rs11,800 crore.

It operates in the core business areas of Industry, energy and healthcare. With nation-wide sales and service network, 19 manufacturing plants and a network of around 500 channel partners, the company employs about 17,200 people.