Monday, March 20, 2023

ABB India plans aggressive buying spree to boost business – Usky News

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MUMBAI: ABB India, the local arm of Swedish-Swiss industrial major ABB, plans to pursue bolt-on acquisitions where they make sense as well as increase production capacity in the country, its top executive said. .
The debt-free, cash-rich company plans to use half of its cash balance of over Rs 3,600 crore for bolt-on acquisitions to step up its play in the world’s fifth-largest economy. A bolt-on acquisition is a type of M&A in which a company buys another company, which is in the same business, to merge it with itself or one of its existing units. Bolt-on acquisitions are made where the target company has made a technological breakthrough or has distinctive strengths. ABB Managing Director Sanjiv Sharma said ABB, which has a market value of over Rs 71,600 crore, is looking for bolt-on acquisitions in areas where the company can add more value to its customers. Startups are also included in the target profile, Sharma said.
The company, which has been operating in India since 1949, also plans to increase its capex to increase production capacity in the country as it builds on the government’s thrust on infrastructure expansion through the FY24 budget. Based on business opportunities. It has 27 manufacturing units in the country and will be setting up a few more units to ramp up sales.
Some of these new facilities will be located in the same premises where its existing plants are located as there is a lot of land available near its facilities in India. Recently, ABB inaugurated a gas-insulated switchgear (GIS) factory in Nashik, Maharashtra. Sharma said the new site will double its GIS capability.
ABB’s India facilities are not only meeting domestic needs but also serving international markets. Over 80% of its revenue comes from India, with the rest coming from export markets. While the export market is expanding, the local market is growing fast, the electrical equipment maker, with a revenue of over Rs 10,000 crore, said.


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