By: PRASENJIT BHATTACHARYA
Source: http://online.wsj.com
Swiss engineering conglomerate ABB Ltd. plans to invest in expanding its products, systems and services in India, as well as localize more of its production and technology development, its group chief executive said Monday.
"India is expected to make massive investments in rail, roads, steel and cement production and power generation in the next five years, which represents a good business opportunity for ABB," Joe Hogan said at a press conference.
He didn't indicate the amount of investment. However, ABB Ltd. (India)'s Managing Director Bazmi Husain said the company is investing in expanding the capacity of its miniature circuit breaker board making factory as well as expanding its capacity to make power generation equipment.
Global engineering companies are actively participating in India's major infrastructure projects as economies in Europe and North America slow. While India has also suffered some sluggish economic growth, most of these companies remain optimistic about the country's long-term industrial growth.
Mr. Hogan said the company's focus in India is to localize technology and production and to build more factories to export products. It also plans to source more supplies from India and expand its research and development capabilities.
Mr. Hogan said there's a "huge amount of anxiety" among businesses in Europe and the U.S.
"Everything now depends on how soon European governments evolve a credible plan to defend the euro and the U.S.' ability to develop a credible deficit reduction plan," Mr. Hogan added.
Mr. Hogan said the crises could become more dangerous for business if they are allowed to linger.
Mr. Hogan added that while rising industrial raw material prices have led to more business from sectors such as steel, it has also led to a rise in costs.
"We have dealt with higher costs by raising prices of our products, besides being more efficient in using raw materials. Overall, ABB's low-voltage products have been most affected by the cost increase," Mr. Hogan added.
On India, Mr. Husain said high interest rates have led to several customers putting off large capital investments, slowing down new business. This, coupled with rising raw material costs, has led to pressure on its profit margins.
He said, however, that the company is confident of continued growth in its India business on the back of its strong orderbook.
Source: http://online.wsj.com/article/SB10001424053111904194604576580240599117716.html
Source: http://online.wsj.com
Swiss engineering conglomerate ABB Ltd. plans to invest in expanding its products, systems and services in India, as well as localize more of its production and technology development, its group chief executive said Monday.
"India is expected to make massive investments in rail, roads, steel and cement production and power generation in the next five years, which represents a good business opportunity for ABB," Joe Hogan said at a press conference.
He didn't indicate the amount of investment. However, ABB Ltd. (India)'s Managing Director Bazmi Husain said the company is investing in expanding the capacity of its miniature circuit breaker board making factory as well as expanding its capacity to make power generation equipment.
Global engineering companies are actively participating in India's major infrastructure projects as economies in Europe and North America slow. While India has also suffered some sluggish economic growth, most of these companies remain optimistic about the country's long-term industrial growth.
Mr. Hogan said the company's focus in India is to localize technology and production and to build more factories to export products. It also plans to source more supplies from India and expand its research and development capabilities.
Mr. Hogan said there's a "huge amount of anxiety" among businesses in Europe and the U.S.
"Everything now depends on how soon European governments evolve a credible plan to defend the euro and the U.S.' ability to develop a credible deficit reduction plan," Mr. Hogan added.
Mr. Hogan said the crises could become more dangerous for business if they are allowed to linger.
Mr. Hogan added that while rising industrial raw material prices have led to more business from sectors such as steel, it has also led to a rise in costs.
"We have dealt with higher costs by raising prices of our products, besides being more efficient in using raw materials. Overall, ABB's low-voltage products have been most affected by the cost increase," Mr. Hogan added.
On India, Mr. Husain said high interest rates have led to several customers putting off large capital investments, slowing down new business. This, coupled with rising raw material costs, has led to pressure on its profit margins.
He said, however, that the company is confident of continued growth in its India business on the back of its strong orderbook.
Source: http://online.wsj.com/article/SB10001424053111904194604576580240599117716.html
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