ABB’s India arm to invest in production expansion
19 Sep 2011
Swiss engineering conglomerate ABB Ltd has drawn up expansion plans for its products, systems and services in India, which will also bring in more localisation of its production and technology development, according to its group chief executive.
"India is expected to make massive investments in rail, roads, steel and cement production and power generation in the next five years, which represents a good business opportunity for ABB," Joe Hogan chief executive ABB Ltd said at a press conference today.
Though Hogan did not indicate the amount of investment, ABB Ltd (India)'s managing director Bazmi Husain said the company would invest in expanding the capacity of its miniature circuit breaker board making factory as also expansion of capacity for power generation equipment.
With economies in Europe and North America slowing global engineering companies are actively participating in major infrastructure projects in India and though the India has also seen some sluggish trends in the past few months, by and large these companies remain bullish on India's long-term prospects for industrial growth.
According to Hogan the company's focus in India was to localise technology and production and to establish more factories for exports of products. The company also has plans for sourcing more supplies from India and expansion of its research and development capabilities.
Hogan said there was a "huge amount of anxiety" among businesses in Europe and the US.
