ABB INDIA LIMITED
Embedded Files
Stock Research and Analysis Report (information valid up-to January 9 2025)
ABOUT US
ABB India is one of India’s leading global technology and automation companies and has been operational for over seven decades. ABB India is a subsidiary of the ABB Group.
ABB India operates through four business areas:
Electrification (39% of total revenue in CY 2023)
Motion (36% of total revenue in CY 2023)
Process automation (21% of total revenue in CY 2023)
Robotics and discrete automation. (4% of total revenue in CY 2023)
ABB India held a 30% market share of installed wind and solar projects using their solutions.
In 2023, 26 Indian states utilised ABB’s power distribution technology.
ABB solutions are present in approximately 30% of hyper-scale data centres across India.
Additionally, over 80% of metro rail and more than 900 electric locomotives utilise ABB technology.
ABB India has 25 manufacturing plants across India. These plants produce a range of products for the company's four business areas. ABB India inaugurated a new factory in Nashik in 2023, doubling their production capacity for eco-efficient Gas Insulated Switchgear (GIS).
Their annual maintenance capex is estimated to be between Rs 100-150 crore over the medium term. This capex will be funded through internal accruals.
ABB India has 28 sales offices throughout the country.
ABB India has a notable international presence, exporting to over 30 countries and serving clients in various global markets.
ABB India has offices in 2 international locations, further expanding their global reach.
ABB India’s parent company, ABB Ltd, a global technology leader, has a significant global presence, operating in over 100 countries.
ABB India's products cater to a diverse range of 23 market segments, spanning various sectors and industries across the country. This includes renewable energy, data centres, power distribution, railways and metro, EVs, etc:
As of December 2024, ABB India has an order book of Rs 6,148 crores.
SECTOR ANALYSIS
The Indian government's capex spending has grown steadily at a CAGR of 54.2% between FY21 and FY24. This increase in capex spending has resulted in a higher number of orders for capital goods companies involved in government contracts. As of H1 FY25, the central government had utilized only 37% of its annual capex target. Consequently, a significant portion of capex spending is expected to occur in H2 FY25, indicating strong growth and revenue prospects for ABB India. Additionally, the consistent year-on-year increase in capex spending suggests a promising outlook for companies like ABB India, with potential growth in orders in the future.
Source: IBEF
ABB India offers a range of products, including switchgear, battery energy storage systems (BESS), and wind turbine controllers, which cater to the renewable energy sector. India's installed renewable energy capacity has grown significantly, rising from 45.9 GW in 2016 to 143.6 GW in 2024, reflecting a compound annual growth rate (CAGR) of 15.32% over the period. Furthermore, robust government support has provided substantial tailwinds to the sector. In the Interim Budget for 2024-2025, the fiscal allocation for solar power grid infrastructure development surged to ₹8,500 crore, a notable increase from the previous year’s ₹4,970 crore. This rise underscores the government’s growing focus on renewable energy. Consequently, the expansion of end-user sectors like renewable energy is expected to drive growth for ABB India.
Source: IBEF
ABB India offers a wide range of products with diverse applications in the Indian EV market. The company provides advanced robotics solutions specifically designed for EV battery assembly. Additionally, ABB India is actively involved in developing charging infrastructure to support the widespread adoption of electric vehicles. Its "Battery Energy Storage Systems" also play a significant role in the EV industry.
According to the Indian Brand Equity Foundation, the Indian EV market is projected to grow from USD 3.21 billion in 2022 to approximately USD 113.99 billion by 2029, reflecting a CAGR of 66.5% during this period. Consequently, the growth of the Indian EV market is expected to drive business expansion for ABB India.
Source: IBEF
The increasing need for data localization in India is driving rapid growth in the country's data center market. Government initiatives, such as the "Data Center Incentivisation Scheme" and the establishment of various Data Center Economic Zones, are further fueling the expansion of this sector.
According to the Indian Brand Equity Foundation (IBEF), the Indian data center market is projected to grow from USD 4.5 billion in 2023 to USD 11.6 billion by 2032, at a compound annual growth rate (CAGR) of 10.98% during this period.
ABB India offers a range of products catering to the data center market, including its recently launched MegaFlex DPA UPS, specifically designed for data centers. Consequently, the rapid growth of the data center market is expected to provide significant opportunities for ABB India's business expansion.
FINANCIALS
(Standalone figures in Rs. Crores)
PEER COMPARISON
(Figures in Rs. Crores)
SWOT ANALYSIS
SHAREHOLDING SUMMARY
Page updated
Google Sites
Report abuse