Dear Shareholders,
As we present this message, we mark a significant milestone in reaching our 75th
anniversary of serving this dynamic nation. Growing along with the country, we feel this
achievement as a partnership built on technological leadership, a focus on sustainability
and a deep understanding of the country's evolving requirements. For three-quarters of a
century, we have been helping industries outrun leaner and cleaner. We at ABB India have
been progressing across utilities, industries, infrastructure and transportation, aligning
our efforts with India's national priorities.
A legacy of innovation and strategic investments
Our 75th year in India is a time for both reflection and renewed commitment. Starting
with a focused portfolio, ABB India now operates across 23 diverse and strategically
important market segments.
Our best-in-class manufacturing facilities in Bengaluru, Nashik, Vadodara and Faridabad
continue to support the Make in India' initiative, allowing us to provide customized
solutions that meet the specific needs of our customers.
The past year has witnessed a significant surge in demand for energy-efficient and
cost-effective solutions, propelled by India's strong economic growth and its ambitious
goals towards sustainability and emissions reduction. Our strategic investments in local
sourcing, research and development and advanced manufacturing have been crucial in
enabling us to address these demands effectively, building stronger collaborations and
partnerships within the local ecosystem.
New brand positioning how do we want to be known to our customers
Our new brand positioning at ABB centers on Outrun.' We have helped industries
consistently achieve high performance while empowering them to enhance productivity,
efficiency and sustainability, ultimately enabling them to outperform. Leaner'
signifies our global leadership in automation, driving productivity and efficiency across
industries. Cleaner' highlights our pioneering role in electrification, leading the
decarbonization of crucial sectors. This strategic re-positioning of our brand marks our
next phase as leaders in electrification and automation, focusing on delivering superior
value by helping industries become leaner and cleaner, or as we like to say
outrun' the competition.
Driving growth through innovation and market focus
The year 2024 has been noteworthy for ABB India, characterized by record achievements
in orders, revenue and margins. Building upon a robust performance in the preceding years,
we have continued our growth trajectory. Our revenue expanded by a commendable 17%. Our
order backlog saw a healthy 12% year-on-year increase, reaching H 9,380 Crores as of
December 31, 2024. This strong backlog provides revenue visibility and aligns well with
our growth plans for the coming periods.
We are immensely proud of the dedication and performance of the ABB India team, which
has consistently delivered a CAGR of 20% in topline in the last five years and bottom-line
growth has doubled over the last four years. This consistent performance, achieved amid
various economic and geopolitical dynamics, highlights our resilience and customer-centric
approach. Our diversified portfolio, strategically deployed across numerous customer
segments, allows us to navigate the complexities of the Indian market with agility and to
capitalize on emerging opportunities.
Serving diverse customer segments
The recently announced India Union Budget 2025 outlines a clear vision for the nation's
future with the key focus areas deeply resonating with ABB India's strategic direction.
Announcements in the budget like the urban challenge fund, extension of Jal Jeevan
Mission, the National AI Mission, setting up CoEs in manufacturing and clean tech
manufacturing mission augur well for ABB India's growth given its portfolio to cater to
energy transition and solutions in digitalization and AI.
Keeping these tailwinds on our sail, we at ABB have set the standard for each of the
bouquets of customer segments we serve. We provide low-voltage distribution panels based
on our electrification technology to frozen food companies through our channel partners
and integrators. We are partnering with power distribution and automation companies in
their modernization efforts. Our low-voltage and medium-voltage solutions and equipment
are key to making data centers more energy efficient especially in an age of AI and
hyperscale verticalizations. Our solar pump drives are enabling sustainable water supply
and helping cold storages use clean energy reliably in parts of northern India.
In the metals manufacturing sector, we continue to provide automation solutions for
both existing plant expansions and greenfield projects. The rapidly expanding electronics
sector is increasingly adopting our robotics solutions, recognizing our global expertise
and local capabilities. We are also a key supplier of propulsion technology for railways,
including for high-speed trains, in addition to providing electrification solutions for
metros and airports.
Sustainability at ABB India
Sustainability remains a core focus in all our operations at ABB India. We are
dedicated to resource conservation across our business, with a significant portion of our
supplier partners actively involved in our green initiatives. In 2024, we achieved an
impressive ~86% reduction in our Scope 1 and 2 GHG emissions compared to our 2019 baseline
and 50% of our manufacturing facilities are now water-positive and zero waste to landfill.
A key highlight is that supplier participation in our ESG program increased to 40.5%, a
33% rise from 2023, as we actively partner with them in their sustainability journey and
strengthen our BRSR reporting.
Across all our campuses, we are advancing sustainability, having achieved significant
carbon footprint reductions and optimized energy consumption through our own
energy-efficient technologies and renewable solutions like solar power, alongside
practices like rainwater harvesting and waste recycling.
Long-term vision and strategic outlook
Throughout our 75 years in India, ABB India has been at the forefront of introducing
cutting-edge global technologies adapted and engineered locally. Our experienced
leadership team across all divisions will continue to navigate opportunities and
challenges with agility and foresight, ensuring sustainable growth and value creation for
all our stakeholders.
ABB India's local for local' strategy, combined with our efficient and
sustainable portfolio, positions us strongly to serve the diverse needs of all our market
segments. This ensures that we offer world-class ABB technologies that are competitive and
relevant to the Indian market. We have witnessed an increasing demand for more
sophisticated and premium products from tier 2 and 3 cities, which are hallmarks of our
global portfolio with local engineering. Be it packaged or solar pump drives, robotics
pixel paint technology, localizations in flameproof or smoke venting motors or
eco-efficient switchgears and many other such examples across divisions ABB has
been expanding its portfolio to serve customer needs in an evolving market condition. In
the process we have also built and helped develop a robust value chain of partners and
suppliers of home grown entrepreneurs.
We see strong potential in segments such as chemicals, pharmaceuticals, automotive,
power distribution, water, electronics and data centers, which are expected to attract
significant investments in the upcoming financial year. We will remain vigilant in
monitoring the global geopolitical situation and its potential impact on the local
economy.
To a bright future
As ABB India celebrates 75 years of partnership with this great nation, we reiterate
our profound pride in our contributions to India's industrial journey and growth story. We
extend our sincere gratitude to our shareholders for their continued trust and support. We
also deeply appreciate the dedication and hard work of the entire ABB India team, whose
commitment is instrumental to our success.
Our innovations are closely aligned with India's ambitious national goals and we look
forward with enthusiasm to continuing our journey as a trusted partner in shaping a
smarter, greener and more resilient future for the country.
Regards,
ADRIAN GUGGISBERG |
SANJEEV SHARMA |
Chairman |
Managing Director |