Despite delayed in early-stage projects, ABB India, a unit of Swiss engineering group ABB, sees continued growth in order inflows. Order inflows were up 45% and 20% in the second and third quarters, respectively.
ABB’s Indian unit, currently valued by the market at $2.47 billion, makes power equipment and provides automation.
However, the company, which competes with Crompton Greaves, Areva T&D India and Larsen and Toubro, is concerned about the impact of credit tightening. Moreover, the central bank has raised interest rates 13 times since the beginning of last year as it tries to tame stubbornly high inflation.
The company, which was involved in Delhi and Bangalore metro projects, still expects margins of 8-10% in the medium to long term and sees no impact from the slide in the rupee at this time. About 60% of the company’s business is comes from power, while 40% is from automation.