Rs1 trillion worth new orders expected: Siemens
22 Jun 2009
Siemens expects to win new orders of around Rs1 trillion (approximately $20.77 billion) in the next three fiscal years 2010 until 2012, which will be generated by government stimulus programmes already announced around the world.
Green technologies are expected to account for 40 per cent or approximately Rs400 billion of this total, which will significantly increase the share of the company's revenues from its environmental portfolio in the future. Siemens based this forecast on an initial systematic analysis of the largest stimulus programmes.
''With their programmes, governments worldwide are sending the right signal. Against the backdrop of the worst global economic crisis in decades, these government measures are at least partially cushioning, in some cases, sharp declines in private-sector demand. They should also have a stabilizing effect on our business,'' said Siemens president and CEO Peter Löscher. ''In addition, the government will safeguard jobs worldwide.
The large portion of the investments in environmental technologies will probably create new green jobs as well. This applies particularly to the green infrastructure giant Siemens,'' Löscher added.
To overcome the global economic crisis, stimulus programmes of around Rs130 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or some Rs47 trillion – is slated for investment in infrastructure projects. The remainder is accounted for by tax cuts, for example, and other governmental non-infrastructure related measures.
The total volume of planned infrastructure expenditures relevant for Siemens comes to about Rs10 trillion globally. Given the company's current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of around Rs1 trillion, of which approximately Rs400 billion will likely come from environmental technologies. In fiscal 2008, Siemens' environmental technologies generated revenue of around Rs1.3 trillion. The company intends to increase this figure to Rs1.7 trillion a year by 2011.