ZURICH: Power equipment and automation major ABB, which has completed over a century in the country, is looking at making India an export hub for power and automation technology solutions.
As part of its increased India focus, the Swiss major has also launched its venture capital arm, ABB Technology Venture, to scout for opportunities in software engineering, software applications and artificial intelligence.
"We are keen to make India our export hub for power and automation technology solutions in the future," ABB global chief executive Ulrich Spiesshofer told a visiting group of Indian media at the company's headquarters in Zurich.
Underlining that India has been a key clog in the wheel of his company for decades, with exports to South and West Asia, he said, "ABB India exports to around 100 countries and it's deep local footprint and rich global and local expertise combine for offerings to customers in India and around the world.
"India has always been a very strong pillar of our success in power grids. We have executed large projects. We have a very competitive product offerings that we produce in our Nasik and Vadodara plants. We have fully localised our offerings," Spiesshofer said, adding "we are one of the strongest local players in the power grids space with a large team. Therefore India is becoming more and more an important export hub for us in this area."
ABB has multiple global feeder factories in India, which meets both domestic and global demand. ABB India's exports have been cloaking 21 pct CAGR over the last four years, contributing to 14-15 pct of its India orders as well as 16-17 pct of revenue in the second quarter of this year, he said.
Currently, India is one of the top 10 markets for the group with an annual turnover of USD 1.3 billion in 2015. On an average its annual investments in India have been USD 100 million to meet capex needs to upgrade facilities or put up new facilities.
ABB's venture capital arm, ABB Technology Venture (ATV), started by him in 2009, is also now active in the country, Spiesshofer said.
"We've recently opened our ATV in India and it is an attractive way to gain insights into technology. I am quite excited about it and will be visiting India soon to meet younger entrepreneurs," he said.
ABB India opened two new factories in 2013 at Salvi in Vadodara to manufacture the next level of environment-friendly and efficient power equipment like gas insulated switchgears and dry type transformers.
It is also looking at increasing the business from renewable energy, electric mobility and latest technologies for diesel, dual-mode locos as well as electrified railways.
Spiesshofer also pointed out that renewables is an area where the ABB will look at continuing a healthy double-digit growth going forward.
On M&A opportunities in India, he said the company is not averse to look at areas that complement its capabilities.
On the product side, ABB could likely be an offering to complement ABB's offerings in the local market as well as capitalise on the country's strong capabilities in software application and engineering.
He said the company will be bidding for the Railways' dual engine (diesel-cum-electric engines) contracts as and when it happens.
"We are already supplying different variants of railway engines. Globally we work with many players. We will be happy to tie-up with Indian Railways," he said, adding India is one of the target markets for sustainable transport solutions.
On his India strategy, he said, this is long-term. "We look at India from a very long-term perspective. India is one of the largest economies, and one of our longest partners for all our products for more than 100 years."
Going forward, the company will put lots of its energy on the solar front, Spiesshofer said. "Already half of the installed solar inverters have been provided by ABB India here. With our fully localised value chain and the strong team we expect to continue our high double digit growth in this sector going forward.
ABB is also working with the government's programme to provide technology solutions for solar powered agricultural pumps to farmers, he said.
ABB India recently opened a new solar inverter manufacturing facility in Bangalore, which will enable it to double its production capacity with advanced technology. It also announced the first solar powered microgrid in the country to be set up to power its Vadodara facility.
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