Circular Transformation of Industries The Art of Scaling Circular Supply Chains 2025

Industry proof point 2: Siemens – building a circular future on the strength of services in India Siemens’ circularity approach centres on doing more with less, such as by creating circular products, embracing circular business models and empowering customer circularity. This enables customers to become more competitive, resilient and sustainable. The company has embarked on a journey to advance circularity by offering a comprehensive portfolio of services aligned with optimal R-strategies such as refurbishment, retrofitting and repair for buildings and energy infrastructure. These efforts aim to scale circular supply chains and life cycle management services. Customer cost savings vary depending on the type of circularity-related service and product. For building and electrical products, repair, refurbishment and component retrofits typically result in cost reductions of 10-30%. Repairing building technology, such as fire safety technology, building automation or other field devices can reduce CO2 emissions by up to 90% compared to producing new units. Extending product lifespans and reducing material use also significantly cuts waste. Beyond buildings, electrical infrastructure can also be repurposed to meet modern standards while minimizing environmental impact. This case study will look at how India now serves as Siemens’ global competence centre for low-voltage (LV) and medium-voltage (MV) switchgear retrofitting, exporting standardized kits and engineering expertise worldwide. Siemens prioritization FIGURE 13 Core strategy Geography – Comprehensive retrofit portfolio in India, a rapidly growing circular market with high customer demand and strong regulations (e.g. waste responsibility) – India also serving as a regional competence centre for regions such as the Asia-Pacific, Middle East and selected European and Latin American marketsCustomers – Range of industries, including state and private utilities, as well as heavy industries such as steel, cement, oil and gas. While sustainability is increasingly on the radar, key decision drivers include reducing downtime, managing obsolescence, optimizing total cost of ownership and ensuring asset availabilityProduct – Outdated MV air-insulated switchgear (AIS) units from the 1980s, each unit typrically having 2-20 panels, each panel weighing 500-2,000 kg and 2.5 m tall. Old AIS units often containing sulfur hexafluoride gas or mineral oil, both hazardous substances. Another programme focuses on old LV switchgears, where end-of-life becomes a safety concernCircular value proposition – Retrofit of existing units with modern vacuum and air circuit breakers, retaining up to 70% of the original cubicle mass instead of replacing entire systems. Asset life extension reducing material waste and embodied carbon, eliminating restricted gases and oils, and ensuring future-readiness and safetyIndustry Technology Employees 312,000 Case maturity Ongoing scaling Circular Transformation of Industries 28