ABB India , a leading player in electrification and automation, has announced plans to intensify its efforts in localizing more products for the Indian market. This strategic move is aimed at strengthening the company's channel partnerships, as revealed during a recent conference call.

Record Backlog and Financial Outlook

ABB India has achieved its highest ever backlog, exceeding Rs 10,000.00 crores, with deliveries scheduled over the next 18-24 months. The company maintains its policy of not providing specific quantitative guidance while working to sustain its historical margin band of 12-15% amid current challenges. ABB India is experiencing delayed decision-making on large projects but continues advancing software development for robotics, including digital twin technology and AI capabilities.

Enhancing Local Manufacturing

The company's 'Local for Local' strategy has been a cornerstone of its operations in India. Currently, over 90% of ABB India's locally manufactured products are consumed within the country. This approach has not only helped in meeting local demand but has also contributed to the company's robust growth in the Indian market.

Expanding Product Portfolio

ABB India has significantly expanded its operations over the years, evolving from a traditional electrical equipment and engineering firm to a future-ready electrification and automation technology leader. The company now serves 23 industry segments, a substantial increase from just six in its early years.

Strengthening Channel Partnerships

By focusing on product localization, ABB India aims to:

• Improve product availability and reduce lead times
• Enhance customization capabilities to meet specific local requirements
• Strengthen relationships with channel partners by providing them with more locally relevant products

Commitment to India's Growth

Sanjeev Sharma, Country Head and Managing Director of ABB India, emphasized the company's commitment to India's progress. He stated, "As India enters a new era of modern infrastructure, digitalization, and energy transition, ABB is proud to play a role that shapes the future of the country."

Impressive Growth Trajectory

ABB India's growth story in the country has been remarkable:

• Revenue has increased 20 times since 1994
• Profit After Tax (PAT) has grown 37 times in the same period
• The company's manufacturing footprint has expanded three-fold, with green-certified facilities

Conclusion

As ABB India continues to align its product offerings with local market needs, the company is well-positioned to capitalize on India's growing demand for electrification and automation solutions. This localization strategy is expected to not only boost ABB's market presence but also contribute significantly to the country's 'Make in India' initiative and overall industrial growth.

The company's focus on strengthening channel partnerships through increased product localization, coupled with its record backlog and ongoing technological advancements, demonstrates its long-term commitment to the Indian market and its adaptability to evolving market dynamics.

ABB India Limited , a prominent player in the industrial technology sector, recently celebrated 30 years of listing on the National Stock Exchange (NSE) with a ceremonial bell-ringing event in Mumbai. However, this milestone comes at a time when the company faces significant operational challenges.

30 Years of Growth and Achievement

ABB India was among the first companies to list on the NSE at its inception in 1994, with shares officially listed on February 8, 1995. Over three decades, the company has delivered remarkable financial performance:

• Market capitalization and share price have surged 68 times
• A lot of 100 shares purchased at listing for INR 8,883.00 is now worth over INR 608,050.00, reflecting a 6,745% increase (excluding dividends)
• Revenue growth of 20 times and profit after tax growth of 37 times since 1994
• Consistent dividend payouts for 30 years

The company has expanded its reach from serving 6 industry segments to 23 segments, with its manufacturing footprint growing 3-fold. ABB India now employs over 10,000 people and works with 750+ partners across 150+ cities. Notably, over 90% of India-made products are consumed locally under the 'Local for Local' strategy.

Current Challenges

Despite this impressive long-term growth, ABB India has recently disclosed challenges in its business operations during a conference call with investors and analysts:

Structural Weakness Unveiled

The company revealed significant structural weaknesses within its operations, raising concerns among stakeholders about its internal processes and ability to maintain robust growth in the current market environment.

Declining Order Activity

ABB India reported a noticeable correction in order activity, suggesting a slowdown in new business acquisitions. This decline could potentially affect its revenue streams in the coming quarters.

Challenges in Order Book Performance

The company acknowledged facing challenges in its order book performance, a crucial indicator for ensuring steady revenue and predicting future business performance.

Implications and Looking Ahead

These revelations come at a time when the industrial sector is navigating through various global economic uncertainties. Investors may reassess their positions and outlook on the company's stock in light of these challenges.

Moving forward, the market will be keenly watching for any strategic measures ABB India might implement to address these issues. The management's ability to navigate through this period of weakness and restore confidence in the company's growth trajectory will be critical in the coming months.

Investors and analysts will likely seek more detailed information in future communications from ABB India, particularly regarding:

• The specific nature of the structural weaknesses
• Plans to revitalize order book performance
• Strategies to address the decline in order activity

The celebratory event at NSE was attended by Ashishkumar Chauhan, MD & CEO of NSE, and Sanjeev Sharma, Country Head and MD of ABB India, highlighting the company's significant presence in the Indian market despite current challenges.