Document Sample
ABB INDIA LIMITED Powered By Docstoc

     ABB is the global leader in the power and               management systems. In power generation,
     automation technology industry, operating               this division offers instrumentation, control
     in more than 100 countries with almost                  and electrification of power plants. ABB delivers
     108,000 employees                                       end-to-end solutions, playing a key role in
                                                             electrification and energy projects, both new
     Global Overview of ABB                                  and retrofit, for utilities as well as industrial
                                                             and commercial customers.
     ABB has an innovation and technology heritage
     that dates back over 120 years. ABB (formerly           Automation Products:The Automation Products
     known as Asea Brown Boveri), is headquartered           division serves customers with energy-efficient
     in Zürich, Switzerland and is recognised as a global    products to improve their productivity.These
     leader in power and automation technologies that        include drives, motors and generators, low voltage
     enable utility and industry customers to improve        products, instrumentation, analytical and power
     their performance, while lowering environmental         electronics.This business serves customers and
     impact. It operates through five divisions:             channel partners, spanning a wide range of industry
                                                             and utility operations, as well as commercial and
     Power Products: Power products are the key              residential buildings.
     components in the transmission and distribution
     of electricity.This division of ABB manufactures        Process Automation:The Process Automation
     transformers, switchgears, circuit breakers, cables     business provides customers with integrated
     and associated equipment. It also provides the          solutions for control, plant optimisation and
     necessary services to ensure product performance.       industry-specific application knowledge.The
                                                             business serves industries including oil and gas,
     Power Systems:This division offers turnkey              power, chemicals and pharmaceuticals, pulp
     systems and services for power transmission             and paper, metals and minerals, marine and
     and distribution grids, as well as for power plants.    turbocharging, among others.
      ABB's offerings include substations and substation
     automation systems, Flexible Alternating Current        Robotics: ABB has the world's largest installed
     Transmission Systems (FACTS), High-Voltage              base of industrial robots. It also provides robot
     Direct Current (HVDC) systems and network               software, peripheral equipment and modular

         Company                 Mode of presence in India          Year of entry          Key business

         ABB India Limited       Subsidiary                         1949                   Power and automation

manufacturing cells for tasks such as assembly,
painting & finishing and machine tending. Key
markets include automotive, foundry, packaging,
material handling and consumer industries.

ABB operates in more than 100 countries with
almost 108,000 employees. For the year ending
December 2006, the company had revenues
of US$ 24.4 billion and a net income
of US$ 1.4 billion.                                    As part of ABB's global footprint philosophy,
                                                       ABB India's state-of-the-art manufacturing facilities
ABB in India                                           in Vadodara and Nashik have been designated
                                                       as global sourcing centres for high and medium
ABB entered India over five decades back.              voltage circuit breakers as well as magnetic
ABB presently employs about 5,500 people               actuators. Besides products, ABB India is also
in India across 10 manufacturing units, 26 marketing   a key regional and global resource base for
offices, 8 service centres and 3 training centres      projects, services and R&D.The ABB group
spanning the country. In addition to these, the        has established a corporate research base
company has a channel partner network                  in India, which focuses on research and other
of nearly 750 partners. As part of ABB's new           related development. It also helps maintain and
regional approach, India has been designated           support a range of software intensive products
as the hub for the Asia Pacific region, which          and acts as a partner for ABB R&D centres as
includes countries like Singapore, Indonesia,          well as business areas within the group.This was
Malaysia,Thailand, Philippines, Pakistan,Vietnam,      the first such centre to be established outside
Australia and New Zealand.                             the US and Europe.

                                                            India's key initiatives in the country include
                                                            work with primary schools to enhance the
                                                            quality of education for underprivileged children.
                                                            Another key initiative called Project Roshni
                                                            helps facilitate employment and earning for
                                                            the differently-abled through sub-assembly
                                                            work for some of ABB's products. ABB is also
                                                            bringing electricity to many rural households
                                                            through its Access to Electricity Programme.
                                                            Some of its sustainability efforts include
                                                            disaster relief projects and a strong
                                                            responsibility to the environment.

                                                            Key Success Factors in India

                                                            ABB has had a positive experience in India,
                                                            and the key factor responsible for its success
                                                            in India has been its maxim “Think global - Act
                                                            Local.” ABB attributes its success in India to
                                                            factors such as the vibrant market, its
     In 2006, ABB also inaugurated a Global Operations      manufacturing base, availability of skilled
     and Engineering Centre at Bangalore.This centre        resources and its competitiveness as a
     serves as a vital resource base for ABB units across   resource base for the group.
     the world. Its main scope of operations includes
     the development and execution of system and            ABB India is among the group's fastest growing
     engineering solutions to support automation            operations.The rate of growth has averaged
     activities across the ABB group.                       around 40 per cent over the past few years,
                                                            clearly outpacing the market. It has also taken
     For the year ending December 2006, ABB India           several initiatives to improve employee productivity.
     accelerated its growth momentum with its sales         Business and functional heads of ABB India report
     crossing US$ 1 billion, driven by a strong growth      to the Country Manager, who in turn reports
     in orders and the introduction of several new          to the ABB Group Executive Committee and
     revenue streams. ABB follows a 'triple bottom
     line' approach in India, which aims at balancing
     the economic, environmental and social impacts
     of business. As part of the company's approach
     towards “living” its commitment to sustainability,
     a dedicated ABB India Foundation has been set
     up as a registered trust for community
     development initiatives. A dedicated sustainability
     organisation has also been put in place, headed
     by a Country Sustainability Controller, who
     reports to the Country Manager. Some of ABB
also to ABB Limited’s Board of Directors in India,
as it is a listed entity. At the same time, the
businesses and key group functions interface
with their respective global counterparts.This
organisational structure has allowed ABB in India
to take speedy decisions and act with local

Future Plans

The revival of the Indian economy, pick up
in the global economy, enhanced automation
levels in Indian industry, passing of the Electricity
Act, ongoing Accelerated Power Development
and Reforms Programmes (APDRP) being
implemented by various Indian states, growing
construction activity and increasing export
opportunities, are some of the factors that augur
well for ABB in India.

On the automation front, increased demand
for efficiency and quality, higher levels of            ABB's India operations
automation, global aspirations of Indian industry       • Presently employs almost 5,500 people in India
and brownfield and greenfield capacity additions,         across 10 manufacturing units, 26 marketing
would be the drivers of growth for the company.           offices, 8 service centres and 3 training centres
ABB will continue to build on the success               • India designated as the hub for Asia Pacific region,
of its strategic focus initiatives in value enhancing     which includes countries like Singapore, Indonesia,
projects, standard products, services and exports.        Malaysia,Thailand, Philippines, Pakistan,Vietnam,
In addition to increasing market penetration              Australia and New Zealand
and higher volumes, ABB continues to invest             • Global sourcing base for high and medium voltage
in capacity and range expansion, expanding its            circuit breakers as well as magnetic actuators
portfolio and introducing new revenue streams.          • Key regional and global resource base for projects,
                                                          services and R&D
                                                        • Crossed the US$ 1 billion sales mark for the
                                                          year ending December 2006