Innomotics India Private Limited

COMPETITION COMMISSION OF INDIA Combination Registration No. C-2026/01/1364

12th February 2026

Notice under Section 6(2) of the Competition Act, 2002 given by Innomotics India Private Limited.

CORAM:

Ms. Ravneet Kaur Chairperson

Mr. Anil Agrawal Member

Ms. Sweta Kakkad Member

Mr. Deepak Anurag Member

Order under Section 31(1) of the Competition Act, 2002

1. On 2nd January 2026, the Competition Commission of India (Commission) received a Notice under Section 6(2) of the Competition Act, 2002 (Act) given by Innomotics India Private Limited (‘Innomotics India’/‘Acquirer’) in relation to acquisition of the low voltage motors (LVM) business (‘Target Business’/‘LVM Business’) of Siemens Limited (Seller) [the Acquirer and the Target Business are collectively referred to as ‘Parties’].

2. The Notice was filed pursuant to the execution of Slump Sale Agreement (SSA) executed on 8th December 2025 amongst the Seller, Acquirer, and Innomotics Pte. Ltd.

3. By way of the proposed combination, the Acquirer proposes to purchase the Target Business from the Seller as a going concern, by way of a slump sale, for a lump sum purchase consideration, subject to the terms and conditions set out in the SSA (Proposed Combination).

4. In terms of Regulation 14 of the Competition Commission of India (Combinations) Regulations, 2024 (Combinations Regulations), vide letters dated 14th January 2026 and 27th January 2026, certain information and clarifications were sought from the Acquirer. The Acquirer submitted its response on 21st January 2026 and 04th February 2026 respectively, after seeking extension of time (Response).

5. Innomotics India is engaged in the manufacturing and supply of industrial motors (High and Medium voltage) and large drive systems (Medium voltage) to sectors such as oil & gas, metals, cement, power & marine etc. It also provides after-sales customer service, maintenance, integrated plant maintenance and tailored solutions for industrial clients. The Acquirer is a subsidiary of Innomotics GmbH (Innomotics).

6. KPS Capital Partners, LP (KPS Capital), a private equity firm, exercises sole control over Innomotics. KPS Capital has investments in several sectors including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS Capital (including funds managed and / or advised by it and its material affiliates) are hereinafter referred to as ‘KPS Capital Group’/‘Acquirer Group’.

7. The Target Business is currently owned by the Seller. It sells LVMs for industrial applications in India and also exports these LVMs to certain countries by following an outsourced manufacturing model. The Target Business does not manufacture any LVMs in India and is only engaged in sale of LVMs in India.

8. For the purpose of competition assessment, the Commission considered the activities of the Acquirer as well as Acquirer Group, including their respective affiliates i.e. ‘Relevant KPS Entities/Acquirer Group’ on one hand and the business activities of the Target Business on the other.

9. Based on the information contained in the Notice, it was noted that both the Relevant KPS Entities and the Target Business have business presence in the broad market for manufacturing and/or sale of electric motors in India (Electric Motors Market). The Target Business only sells LVMs for industrial use in India. As submitted, neither the Acquirer nor the Relevant KPS Entities sell LVMs in India. Therefore, at the narrow product level, there are no overlaps between the Relevant KPS Entities vis-a-vis the Target Business. Further, there are no existing or potential vertical relationships and/or complementary linkages between the business activities of the Relevant KPS Entities and the Target Business in India.

10. The Commission decided to leave the delineation of the relevant market open, as it was observed that the Proposed Combination is not likely to cause appreciable adverse effect on competition in any of the plausible relevant market(s) in India.

11. The Commission observed that business activities of the Parties exhibit an overlap only at the broadest sector level of Electric Motors Market and in the said market segment too, the combined market share of the Parties is [5-10]% and incremental share is [0- 5]%. Further, the Electric Motors Market is characterised by presence of formidable players.

12. Considering the material on record, including the details provided in the Notice and the assessment of the Proposed Combination based on the factors stated in Section 20(4) of the Act, the Commission is of the opinion that the Proposed Combination is not likely to have appreciable adverse effect on competition in India. Therefore, the Commission approves the Proposed Combination under Section 31(1) of the Act.

13. The order may be revoked if, at any time, the information provided by the Acquirer is found to be incorrect.

14. The information provided by the Acquirer shall be treated as confidential in terms of and subject to provisions of Section 57 of the Act.

15. The Secretary is directed to communicate to the Acquirer accordingly.