Mumbai, March 4: Siemens is selling its healthcare undertaking to Siemens Healthcare Pvt Ltd (SHPL), a subsidiary of Siemens AG, for Rs 3,050 crore as the German giant seeks to bring its healthcare business under a separately managed company to give it a greater focus.

Presently, over 85 per cent of the healthcare revenues of Siemens come from products imported from the parent and its subsidiaries.

Siemens Ltd managing director and chief executive officer Sunil Mathur said the company would increase its focus on power, industrial automation and smart cities, while enabling the German parent to "further strengthen its focus on the healthcare segment in India, by aligning it with its global strategy and management framework".

Siemens said the Indian healthcare market was now witnessing a changed scenario in terms of different business models and customer expectations, which require significant investments to venture into newer areas in order to grow.

Special dividend

The transaction is subject to regulatory, statutory and shareholder approvals. Siemens would give as a special dividend 50 per cent of the sale consideration as reduced by applicable capital gains tax and dividend distribution tax.

Siemens Healthcare Pvt Ltd was incorporated on May 26, 2015. It posted revenues of over Rs 80 crore for the quarter ended December 31, 2015 and profit before tax of Rs 18 crore during that period.