Aug. 21 (Bloomberg) -- Siemens AG, Europe's largest engineering company, aims to double sales at its Indian unit in the next three years, Chief Executive Officer Peter Loescher said in Mumbai today.

``In the last three years, our business volumes have tripled and we want to keep the momentum going,'' Loescher said. ``India plays a huge part in my agenda.''

Siemens India Ltd. will increase local sales and exports as its parent wants to make the South Asian nation a global sourcing base for the Munich-based company, Loescher said. Siemens aims to grow equally its businesses in China and India, the world's two fastest growing major economies.

The local unit of Siemens, state-controlled Bharat Heavy Electricals Ltd. and other electrical equipment makers are vying for domestic orders as India seeks to add 40,000 megawatt of power generation capacity in three years. India expects investments of $320 billion in infrastructure by 2012.

The company will aim to increase domestic sales in its infrastructure, energy and health-care businesses and boost exports from India, Loescher said. Exports form 35 percent of Siemens India's revenues, compared with 6 percent three years ago, he said.

Siemens, which has hired 1,500 people in India in the past nine months, will hire more people, according to Juergen Schubert, managing director of Siemens India. The company employs 16,500 people in 17 factories across the country.

No Delisting

Siemens India has no plans to delist from the Indian stock exchanges, Loescher said. Siemens owns a 55.18 percent stake in the Indian arm, according to Bloomberg data.

The Indian unit is looking to team up with other companies in bidding for the 4,000-megawatt so-called ultra-mega power projects that the Indian government is planning to set up, Schubert said.

Reliance Energy Ltd., India's second-largest power utility, and Tata Power, the third-biggest, have won contracts to build two similar-sized plants this year.

The country is seeking investments of close to $100 billion in generation, transmission and distribution of power to meet growing demand. The finance ministry estimates India loses 2 percentage points from annual growth each year because of inadequate power and transportation networks.

To contact the reporter on this story: Archana Chaudhary in Mumbai at achaudhary2@bloomberg.net.

Last Updated: August 21, 2007 08:46 EDT