Siemens Ltd, the Indian subsidiary of Siemens AG, has announced its decision to demerge its energy business into an independent entity named Siemens Energy India Limited. This restructuring move is intended to enable both companies to focus on their core businesses and explore new growth opportunities within their respective industries. Under the demerger proposal, shareholders of Siemens Ltd will receive one share in Siemens Energy India for each share held in Siemens Ltd. Once regulatory approvals are obtained, Siemens Energy India Limited is scheduled to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) by 2025. Siemens Energy India will primarily concentrate on providing energy solutions covering the entire value chain, which includes power and heat generation, transmission, and storage. The company's portfolio will encompass a mix of conventional and renewable energy technologies, such as gas and steam turbines, hybrid power plants fueled by hydrogen, as well as power generators and transformers. This strategic shift is a response to the evolving market dynamics and divergent capital allocation requirements between the industrial and energy sectors. The demerger reflects a broader international trend initiated by Siemens AG in 2020 when it separated its energy business. In anticipation of this move in India, Siemens AG acquired an 18 percent stake in Siemens Ltd from Siemens Energy for approximately €2.1 billion, elevating its ownership to 69 percent while reducing Siemens Energy's share to 6 percent. The remaining 25 percent is held by public shareholders. Siemens Ltd will continue to operate as a technology-driven company in the industrial, infrastructure, and mobility sectors. The demerger is strategically aimed at unlocking shareholder value by empowering each entity to pursue its distinct strategies and capitalize on market opportunities. It is anticipated that the separation will enhance decision-making efficiency, particularly concerning capital deployment, and position both businesses more effectively to address the evolving demands of their respective industries.