Partnering sustainable growth
As a global leader in industrial technology, especially power solutions, ABB has been taking strident steps in India, and in particular Maharashtra, to create a strong position for its various activities. In a conversation with Huned Contractor, ABB India’s Managing Director Sanjeev Sharma elaborates about the company’s various forays
Q. Could you provide an update about ABB India’s operations?
ABB is a global leader in industrial technology and is of course well-known for its power solutions. The company employs 1,40,000 people and operates in approximately 100 countries. It has been successfully investing in the Indian subcontinent ever since and has steadily expanded its manufacturing, engineering and R&D footprint. Today, ABB employs over 10,000 people across nine locations and 47 factories. It has 12 manufacturing sites on the subcontinent and one of its seven corporate research centres around the world is based in India. Our success has been driven particularly by a strong focus on research and development. Many of the technologies that underlie our modern society, from high-voltage DC power transmission, energy saving drives to a revolutionary approach to ship propulsion, were developed or commercialized by ABB. Today, ABB stands as the largest supplier of industrial motors and drives, the largest supplier of power grids and the largest provider of generators to the wind industry.
Q. How strong is your position in Maharashtra?
From automotive giants to renewable energy entrepreneurs, ABB is helping Maharashtra reach the next level of growth while raising the sustainability performance of its local suppliers. The state of Maharashtra is India’s most industrialized state, with Pune, the second-largest city in the state after Mumbai, recognised as the engineering and automotive hub of India. Pune is considered the original ‘Detroit of India’ with most leading automotive brands in the city, and for more than 30 years, ABB has contributed to its success and the success of many businesses in Maharashtra directly and indirectly through channel partners and suppliers. More than 25% of ABB India’s suppliers are based in Maharashtra and ABB technologies can be found in approximately two-thirds of Pune’s automotive suppliers.
ABB also provides various power equipment like hybrid PASS and gas insulated substations, which take up anywhere between 30-60% less space. ABB technologies have also been integral to the power transmission and distribution network of the state and in and around Mumbai, powering the city and its various industries. City gas distribution to oil fields in the Arabian Sea are monitored by ABB technology comprising flowmeters and SCADA remote monitoring. ABB has been manufacturing in locations like Nashik and also exporting to around 100 countries of the world from factories in Nashik for almost 40 years.
Q. Could you elaborate about the company’s contribution to the Indian automotive sector?
India is the world’s fourth-largest automotive market, after Germany, the USA and China. In Pune, from auto-rickshaws to luxury sedans, ABB technology can be found in welding, handling, painting and assembling. ABB robots paint 50% of cars manufactured in Pune and most automobile manufacturing plants use ABB thermal mass flow meters in their engine test beds for quicker response times and reliability. Automation and power management solutions are the other areas where ABB is contributing to the sector. Two thirds of the automotive ancillaries also deploy ABB technology in and around Pune.
Q. What is your supplier sustainability development program?
ABB runs a global program in a bid to continuously improve its supply base across the globe and in India. Through collaboration and partnership, ABB helps small and medium suppliers ensure compliance with ABB’s Supplier Code of Conduct, which covers topics such as working conditions, safety, and environmental impact, among others. Activities include capacity-building, onsite assessments and assistance to chart a roadmap for the successful implementation of various operational and business recommendations. In Maharashtra, 49 suppliers participate in the program, including 11 in Pune.
To cite a case study, ABB’s detailed assessment revealed the need to manage overtime and shift from oil to electric furnaces in the operations of Excel Engineering Industries. Following the recommendations to streamline the work of skilled workers and change the furnace, the company managed to increase the volume of production and optimize its manufacturing cost. Despite the significant reduction of working hours, it improved the number of pieces produced per man hour by 31%. These improvements had a multiplier effect on several aspects of business. The workers are now motivated, focused and pleased to go back to their families earlier.
Q. How do you help accelerating growth for local machine manufacturers?
To take Pune as an example, in addition to being an automotive and electronics manufacturing hub, the city is also a key player for special purpose machines, packaging automation companies and various machine OEMs. Alligator Automations is one such OEM which provides a range of packaging solutions from bag filling, secondary and case packaging, palletizing, conveyors and product inspection automated solutions. In their case, ABB has been a valuable technology partner through supply of robots, modular manufacturing solutions, application software and sharing application knowledge combining its decades of global experience with deep Indian footprint.
Q. Is it true that you have also partnered with companies engaged in the production of sugar?
Maharashtra is India’s second-largest state for sugar processing, following Uttar Pradesh. The two states account for 45% of India’s sugar mills and 70% of the country’s production. In Pune, over 80% of the sugar mills use ABB measurement and analytics solutions for motor control and drives, which are especially helpful in reducing energy consumption in centrifuge and refining applications. Working with an ABB channel partner means having immediate access to experts with world-class skills and resources, plus an in-depth understanding of local business needs and conditions. ABB as a brand is well accepted in the sugar market because of its reliable and high-quality products.
Q. Has the company taken any initiatives in the solar power sector?
Yes, we are taking clean solar irrigation to the next level.
The Government of India has recently launched a revamped scheme to encourage solar irrigation, which will include solar pump subsidies as well as incentives for power distribution companies to buy power for farmers to replace diesel options. A leading start-up manufacturer of solar pump controller in Pune, Ecozen Solutions (P) Ltd. has been partnering with ABB drives, which provide additional value to solar pump irrigation packages to farmers across India. When enough radiation is available, the ABB solar pump drive starts automatically and the motor connected to it begins to run the pump to draw water, stopping the flow at sunset, thereby avoiding wastage. ABB is also a leader in solar inverters, which form part of solar projects across the state. In Maharashtra, ABB had made a record of sorts when it commissioned a solar plant in under seven months.
Q. As a leading supplier of power and automation equipment, could you provide a breakdown of the various sectors where you have established a niche position?
In terms of numbers, 50% of solar power generated in India passes through ABB equipment. Up to 70% of India’s oil production is monitored and controlled by ABB solutions; 50% of cement plans commissioned in the last five years run on ABB’s control system DCS; 52% of diesel locomoties run on ABB turbos; and 30% of such super express trains as Rajdhanis and Shatabdis run ABB traction transformers.
Q. Can you cite two power projects the company is proud of?
We have executed the world’s first multi-terminal HVDC for bulk transmission of power from the North East region to high consumption regions 1,700+ km away. A similar project is also underway from Raigarh to Pugalur. We are also going to complete India’s first commercially operational digital substation in the state of Kerala.
Q. With the present buzz around electric mobility, what has been ABB India’s contribution?
The latest is that ABB India has installed an electric vehicle (EV) fast charging station at Niti Aayog Office in Delhi. The 50 kW fast charging station can provide a full charge to an electric vehicle in 30 minutes. In fact, this is an indication that we are betting big on India’s EV market in the years to come. We are very excited about India’s EV vision and the steps being taken by the government. The demand in India is picking up, but we are ahead of the curve. The ABB fast charger is being used by all Indian and global original equipment manufacturers (OEMs) to test their vehicles. As a global player in EV fast-charging solutions, ABB has more than 6,000 units installed across more than 55 countries. We will continue to deploy and leverage the next level of global, open standard technology to provide the best-in-class reliable and cost-effective EV charging experience for Indian citizens living in smart cities.
Q. What are the company’s financials and prospective areas of growth?
ABB India’s profit before tax for the calendar year ended December 31, 2017 increased by 8% to Rs 622 crore while profit after tax increased by 12% to Rs 420 crore. As far as growth areas are concerned, we are focusing on three segments: utilities, transportation and infrastructure, and industry. As of now, the industry has been in a subdued phase but that is only because capital expenditure has been curbed. However, the operational expenditure is still high and that gives us good scope. To add to that, India consumes up to 30% more energy in the production process to produce one unit of anything as compared to many developed and therefore we play an important role in helping companies become more power-efficient.
