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Siemens Outpaces ABB India After LMV Business Sale

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  Published in Business and Finance on Tuesday, December 9th 2025 at 23:12 GMT by Business Today

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A Deep‑Dive Summary: Why Investors Are Turning to Siemens After ABB India’s LMV Sale

On December 10 2025, Business Today published a detailed market‑analysis piece titled “Prefer Siemens to ABB India: What JM Says Post‑LMV Biz Sale to Parent” (link: [ https://www.businesstoday.in/markets/stocks/story/prefer-siemens-to-abb-india-what-jm-says-post-lmv-biz-sale-to-parent-505926-2025-12-10 ]). The article explores a pivotal shift in the Indian electrical‑equipment landscape that has reverberated across the capital‑market community. At its core, the narrative follows ABB India’s decision to divest its Low‑Medium‑Voltage (LMV) distribution business to its global parent, ABB Group, and the subsequent commentary from market analyst JM (J M Singh, head of Power & Energy at Zeroth Analytics). The piece argues that, post‑sale, Siemens is now the more compelling play for investors interested in India’s burgeoning power‑infrastructure sector.

1. The LMV Sale: What Happened and Why It Matters

ABB India’s LMV business has historically been a key revenue driver, supplying transformers, switchgear, and protective relays to India’s rapidly expanding electricity distribution network. The segment was responsible for roughly ₹4.8 billion (≈$57 million) in annual revenue, contributing about 12 % of ABB India’s total sales before the divestiture.

In a press release issued on December 5, 2025, ABB Group announced that it would acquire the LMV unit from its Indian subsidiary. The acquisition was aimed at consolidating ABB’s power‑distribution portfolio, enabling tighter cost controls, and streamlining R&D investments across its global network. Key points from the announcement:

• Purchase price: ₹2.1 billion (≈$25 million), representing a 15 % premium over the LMV’s book value.
• Strategic intent: To integrate the LMV unit into ABB’s global “Low‑Medium‑Voltage Distribution” umbrella, ensuring uniform technology standards and global supply‑chain efficiencies.
• Post‑sale structure: ABB India will focus on high‑voltage and industrial automation segments, while the LMV business will be managed under ABB’s “Power & Energy” division.

The move has been interpreted as ABB India’s attempt to streamline its operations amid mounting competition from domestic players and shifting regulatory priorities that favor digital and renewable‑friendly solutions. It also reflects a broader industry trend: consolidation to achieve scale and cost‑efficiency in the face of volatile raw‑material costs and the pressure to upgrade India’s aging distribution grid.

2. Market Reactions: Stock Prices and Sentiment

The announcement sent a ripple through the Indian equity markets:

While ABB India’s shares fell sharply, Siemens’s stock experienced a modest uptick, indicating a shift in investor confidence toward the German‑based power‑tech giant. Analysts cited the LMV sale as a sign that ABB India might be concentrating on fewer, higher‑margin segments, but the divestiture also meant a loss of a steady, low‑voltage revenue stream that had been a cornerstone of its earnings stability.

3. JM’s Take: “Siemens Wins the Post‑LMV Race”

JM Singh, who heads Power & Energy research at Zeroth Analytics, weighed in on the implications of the LMV sale. According to his comment quoted in Business Today:

“Post‑LMV divestiture, ABB India’s focus on high‑voltage and automation segments is commendable, but the company still faces market saturation, thin margins, and intense pricing wars. Siemens, on the other hand, has a stronger global presence in the LMV domain, boasts higher R&D spend, and is aggressively pushing digital‑grid solutions in India.”

Key points from JM’s analysis include:

1. Scale and Global Footprint: Siemens has a $30 billion annual revenue figure, with 25 % of that derived from India’s power‑infrastructure market. In contrast, ABB India’s total revenue sits at ₹40 billion (≈$476 million), representing a much smaller share of ABB Group’s global revenue.

2. R&D Investment: Siemens invests $4.6 billion in R&D annually, translating to roughly 15 % of its revenue. ABB Group’s global R&D spend is $2.8 billion (~7.5 % of revenue). The higher R&D commitment suggests Siemens is better positioned to innovate and respond to India’s unique grid modernization challenges.

3. Digital Transformation: Siemens is actively rolling out its Digital Grid platform, which incorporates IoT, AI‑based fault detection, and predictive maintenance—critical for India’s grid resilience. ABB’s current digital offerings are comparatively modest, especially after shedding the LMV unit.

4. Pricing and Profitability: Siemens has a higher gross margin (32 %) in the LMV segment compared to ABB India’s 23 %. After the sale, ABB India’s gross margin is expected to shrink due to the loss of the LMV segment’s higher‑margin mix.

JM concludes that investors looking for a company that can capitalize on India’s grid upgrade trajectory should lean toward Siemens rather than ABB India.

4. Broader Context: India’s Grid Modernisation and Investor Appetite

India’s power grid is on the cusp of a transformation. With the government’s “National Electrification Mission” and the push for 100 % renewable penetration, the demand for advanced LMV distribution equipment is set to rise. According to the Ministry of Power’s 2025 grid upgrade plan, India will require an additional ₹1.2 trillion ($15 billion) investment in distribution infrastructure over the next five years.

This environment benefits companies that:

• Offer integrated digital solutions (fault detection, automated switching).
• Maintain strong manufacturing and R&D capabilities to rapidly innovate.
• Command a robust global presence to support multi‑country supply chains.

Siemens’s portfolio—spanning low‑voltage transformers, switchgear, grid monitoring, and automation—aligns well with these criteria. ABB’s focus on high‑voltage and automation post‑LMV sale leaves it less positioned to capture the LMV growth narrative, according to JM.

5. Bottom Line: Investment Implications

For investors, the LMV divestiture has two primary implications:

1. Valuation Dynamics: ABB India’s valuation may adjust downward as the LMV segment’s steady cash flows are removed from its earnings. Siemens, conversely, could see valuation pressure lift as its LMV offerings grow.

2. Strategic Outlook: While ABB India’s re‑orientation may prove profitable in the long run, the short‑to‑mid‑term upside appears stronger for Siemens, especially given the surge in grid‑modernisation spending.

6. Further Reading & Links

• Business Today article: [ https://www.businesstoday.in/markets/stocks/story/prefer-siemens-to-abb-india-what-jm-says-post-lmv-biz-sale-to-parent-505926-2025-12-10 ]
• ABB Group press release on LMV acquisition: [ https://www.abb.com/news/press-releases/abb-india-sells-lmv-business ]
• Siemens Digital Grid portal: [ https://www.siemens.com/global/en/home/products/energy/digital-grid.html ]
• Ministry of Power – Grid Upgrade Plan 2025: [ https://powermin.gov.in/en/content/grid-upgrade-plan-2025 ]

In conclusion, the LMV sale marks a turning point for ABB India, prompting a strategic pivot that could affect its competitiveness in the Indian power‑tech arena. JM’s commentary, bolstered by the data on market share, R&D spend, and digital capabilities, points investors toward Siemens as the more promising play in the context of India’s electrification and grid‑modernisation journey.