Dinesh,
LSMW cannot be used to "extract" data from any platform. It can only be used as a translation/transformation and Load tool on an SAP instance.
I'm not that familiar with Siebel, but you'll have to use another tool to extract data.
If Siebel is being retained within the enterprise, you should be considering MDM. Firstly as a means to extract and load data into MDM, and secondly to effectively maintain your master data on both SAP and Siebel.
Hope this helps.
Andy
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