Bangalore: Power and automation technologies major ABB on Monday announced that it would invest an additional $100 million in India, where it expects to double business volumes and hire 4,000 employees by 2010.
“We are extremely encouraged with the performance of our Indian operations and India will soon be among the top five markets for ABB,” president and CEO of Swedish-Swiss engineering group Fred Kindle told a news conference here.
“Based on market outlook and our well established presence here, we expect the business volumes for ABB in India to double by 2010”.
Having completed its previously announced investment programme of $100 million, the company now plans to invest an additional $100 million for capacity and range expansion over the next two-three years to support this growth, he said.
Chairman of ABB Group, Hubertus von Grunberg said the company currently employs over 6,000 people in India and expects its human resource base in this country to touch around 10,000 by 2010 to support its growth plans.
“India is among the fastest growing economies in the world today and a key focus area for ABB. It is an important part of our growth strategy and will play an integral role in strengthening ABB’s global footprint,” he said.
For the calendar year 2006, ABB’s revenues crossed $1 billion in India, with revenues growing 40% and net profit by 50%, officials said.
ABB’s expansion plans on the anvil in India include a new greenfield facility at Nelamangala near here for manufacturing low voltage products and power electronics.
The company is also establishing new manufacturing units in Vadodara for small power transformers and distribution automation products. Meanwhile, capacity and range expansion is underway across businesses and locations.
ABB said it will double its production capacity for high voltage breakers, instrument transformers and high tension machines as well as expand the capacity of large power transformers to 17,000 MVA as part of its expansion plans.
ABB will also manufacture 765 KV equipment in India.
“In addition to serving the needs of the Indian market, we are also determined to leverage India as a key resource base”, Kindle said. “Besides its pivotal role in the South Asia Pacific region, India is increasingly contributing to ABB’s global operations”.
He said the company plans to boost head count of its engineers in R&D facilities in India from the present 400 to 1,000 in the coming years.