The Hindu Business Line : ABB to ramp up automation products biz

India's growth story has propelled ABB to ramp up its automation products business in the next three years for meeting the rapidly growing demand for its automation products offering motors, drives low voltage products with expansion in capacity and strengthening its distribution systems for speedier delivery to customers.

The strategy would see ABB double its capacity in its automation division's facilities and expand the product range to leverage its strength of being most comprehensive to further consolidate its presence.

Mr Tom Sjokvist, Head, Automation Products Division, and member of the Executive Committee ABB Group, told Business Line today that the automation products division was growing at 30 per cent, much higher than the ABB India's growth and contributed $200 million.

In fact, Mr Sjokvist said the division grew so fast that the company was finding it difficult to meet its export demand.

India figured very high in ABB's special growth and cost migration strategies, even as the company had identified China and East Europe for the approach, Mr Sjokvist said.

Expansion plans

A new plant in Haridwar to produce low voltage distribution electrical units to support its recently launched electrical wiring accessory (automated switching and control systems for home and institutions), capacity expansions for high voltage machines, low voltage motors and instrumentation in other units were part of the expansion strategy. Recently, ABB inaugurated two new units in Bangalore for manufacturing control gear and motors.

ABB had utilised $100 million earmarked earlier for the purpose but "ABB will continue to invest for growth to maximise its opportunities in India," Mr Sjokvist said.

The company plans to set up its own inventory storage infrastructure with IT support in key regional centres to achieve speed to market and reduce the distribution cost.

One each in Bangalore and Nagpur has come up to cater to the southern and central Indian markets.

ABB had also scaled up the channel partners to 750 from 400 only three years ago to increase the reach of its products.

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