We seek growth in BRIC nations: Joe Kaeser

Joe Kaeser, CFO of the German engineering conglomerate Siemen s, was in Mumbai recently to fine-tune the company's India strategy. He spoke to BT's Suman Layak. Edited excerpts:

We faced two crises: One internal and the other was the global financial crisis. The internal crisis was one of compliance that led to a change in the CEO of the company in 2007, in 80 per cent of the management board and 50 per cent of the supervisory board. We settled with authorities in the US and Germany and it led to a cultural change in the way we operate now. With Siemens back on track as a normal company in the top league, we have a strategic framework for the company to operate in and a clear growth scenario.

Growth has to be capital-efficient. While we seek growth markets in the BRIC nations (Brazil, Russia, India, and China), we must also defend our developed markets, which bring in two-thirds of our revenues. Growth must come in a way that it pays dividends and profitability is what brings in dividends.

Siemens AG applied for and got its banking licence in: Germany in end-2010. This bank will be operating in infrastructure finance, as that is where we operate. So, in many cases, due to our long-term business domain know-how, we can offer tailor-made financing to our customers compared to what the usual housing banks can provide.