Focusing on its major businesses that meet the demands of shareholders at its German parent, Siemens, the Indian subunit of it India's Siemens Ltd. will demerge its energy business into a separate listed entity. Siemens Energy sold an 18% stake in the Indian entity to Siemens AG for about Rs.2.1 billion to enable the demerger. In December 2023, Siemens Ltd. said that, at the request of some stakeholders, it was considering spinning out its energy division. In 2020, the German engineering firm separated and went public as Siemens Energy. Siemens Ltd. will continue to concentrate on technology-driven development in the infrastructure and industry divisions following the demerger, while Siemens Energy India will oversee the power production segments, which include renewable energy. For each share owned, Siemens Ltd. shareholders will get one share in Siemens Energy India. Sunil Mathur, CEO and MD, said the energy and industrial businesses had different market drivers and capital needs. The demerger will let both pursue their strategies and make capital decisions. The demerger plans are being announced at a time when India anticipates that in fiscal 2025, its electricity generation will increase at the quickest rate since at least 2011?2012. Siemens AG has been considering more investments in the nation, which is seeing more electrification projects and infrastructure upgrades. Additionally, Siemens' India division said that it will increase the capacity of two of its 32 plants in the nation, expanding its total capital expenditure to Rs 10 billion at two facilities in the western Indian state of Goa. Gains from Siemens Ltd.'s energy and smart infrastructure businesses, which account for over 50% of the company's total pre-tax earnings, helped the company record a 70% increase in second-quarter profit.