Siemens Energy AG has initiated the sale of its Indian wind turbine business, a subsidiary of Siemens Gamesa Renewable Energy, as part of a strategic move to address losses and aim for profitability, Mint has reported.

The Indian unit has annual revenues of $700m and a valuation of $1bn.

Barclays is overseeing the sale process, with potential buyers including Adani Renewable Energy, Brookfield Energy Transition Funds, Macquarie, Masdar and TPG Rise.

The decision aligns with Siemens Gamesa’s strategy to concentrate on its core markets in Europe and the US.

Despite challenges, Siemens Gamesa considers the Indian market of strategic importance and will continue to honour its service commitments in the region.

The divestment is part of Siemens Energy’s larger plan to fully integrate Siemens Gamesa and address ongoing quality and operational challenges.

Siemens Gamesa aims to achieve break-even status by 2026, following an anticipated loss of €2bn in the fiscal year 2024.

The sale has already attracted initial interest from infrastructure and climate funds, and strategic investors.

Siemens Ltd, the Indian subsidiary of Siemens AG, recently announced the demerger of its energy business into a separate entity, Siemens Energy India Limited, which will have a separate listing.

Siemens Limited will focus on industry, infrastructure and mobility technology, while Siemens Energy India Limited will specialise in energy technology to support customers in moving towards a more sustainable future.

The demerger and listing process of Siemens Energy India is expected to be completed by 2025.

The company will offer a wide range of solutions across the energy value chain, including power and heat generation, transmission and storage.

Its portfolio will feature a mix of conventional and renewable energy technologies such as gas and steam turbines, hybrid power plants using hydrogen, power generators, and transformers.