ABB plans more manufacturing in India

May 1, 2006
Swiss-based global automation giant ABB (www.abb.com) plans to establish two new units in India at a cost of $20 million.

ABB Group President and Chief Executive Officer Fred Kindle said that one of these units, in Haridwar, will manufacture low voltage distribution electrical products, and the other, in Nashik, will make vacuum interrupters. The Haridwar unit is expected to be ready by the third quarter of this year, and the Nashik facility by early 2007, with each unit employing close to 400 people.

Over the past two years, ABB has set up manufacturing units in Bangalore, Vadodara, Nashik and Halol to expand its portfolio of products made in India. ABB’s Indian operations are a global sourcing base for several products and components including high- and medium-voltage circuit breakers and magnetic actuators.

“ABB is firmly committed to growing its operations in India and our investment program for the country is on course. Half of our proposed investments have already been made, and the remaining will be done by early next year,” said Kindle.

He said the Group’s Indian subsidiary, ABB India, has already spent $50 million out of the $100 million investment that he had announced for Indian operations during his last visit to India in November 2004. “The balance, $50 million, would be spent by early 2007,” he told reporters during a visit to ABB’s local operations here.

Kindle said India is one of the fastest growing markets for the $20 billion ABB, and that a growing proportion of ABB’s investments are being made here. “Nearly 10 percent of our capital expenditure of $500 million last year was made in India. This proportion could grow,” he said.

Not wanting to be left out on the long list of global chief executives praising India’s resources and the potential it holds, Kindle also said, “India is on the development runway, poised for takeoff. By overcoming its infrastructure challenges and unleashing its huge potential, India will take its rightful place in the emerging global economic order.”

Bob Gill, [email protected], is Editor in Chief of Industrial Automation magazine in Singapore.

Uday Lal Pai,[email protected], is a freelance journalist based in India.

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