ABB India Ltd

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.

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.

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.

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.

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 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.

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.

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,