ABB Sees India as Key Growth Market for Electrification Business

Swiss engineering giant ABB is optimistic about India’s potential in its electrification business, with expectations that the country could become its third-largest market as early as this year. Giampiero Frisio, President of ABB’s Electrification Business Area, stated that India and China are poised to grow at a similar pace, reinforcing India’s significance in ABB’s global strategy.

To support this growth, ABB is investing $20 million to expand its factory capacity in Nelamangala, near Bengaluru, and an additional $30 million in a new power lab in Hyderabad to boost research and development. Currently, the US and China lead as ABB’s top electrification markets, but India’s rapid expansion in sectors like data centers, solar energy, and semiconductor manufacturing is expected to drive future growth.

Frisio anticipates double-digit demand growth for electrification solutions in India’s data center sector. Regarding potential disruptions in global demand due to AI advancements, he noted that market expansion is still expected in the near term.

Additionally, ABB sees India as a strategic hub for re-exports, particularly to West Asia, parts of Asia, and Africa, which currently account for 10-15% of its exports. While India remains the primary focus, the company is leveraging its growing presence to expand its international footprint.

Despite potential shifts in US energy policies, Frisio remains confident in the continued investments driven by the Inflation Reduction Act, emphasizing ABB’s role in making the oil and gas industry more efficient and sustainable.

Source: Business Standard