With nearly Rs 4,000 crore in kitty, we're are looking at acquisitions, says ABB India head
As the Indian economy expands, the India unit of the Swedish-Swiss multinational is looking acquiring small and medium businesses with surplus cash in hand
- Feb 11, 2023,
- Updated Feb 13, 2023 10:46 AM IST
The India unit of Swedish-Swiss multinational corporation ABB has said that it is looking at acquiring smaller companies in the country to expand its business in here.
And ABB India proposes to undertake this bolt-on acquisition strategy through as much as 50 per cent of excess cash balance of Rs 3,616 crore available on its books organically, the company’s country head & managing director Sanjeev Sharma told Business Today on Saturday.
“We are looking at opportunities to bolt on acquisitions in segments where we can add further value to our customers. We have a good balance sheet with strong cash flows and plenty of land available next to our plants in India,” said Sharma.
While refusing to provide a firm guidance, Sharma said that ABB India could be looking at in any of its 18 verticals to complement its product offerings or digitalisation for the proposed expansion. The verticals include everything from power systems to automation to robotics.
“ABB’s characteristic is that it continues to evolve with the market expectations. That’s why we continue to acquire new technologies, new acquisitions and solutions in areas in which we seek presence,” Sharma told Business Today.
Sharma said that the company now had a quality mix of products, with 70 per cent of the business being delivered by their factories in conventional engineering. The balance 15 per cent is contributed by services and performance-based solutions.
“This 70 per cent base business is a fast-moving business. That’s how we have evolved over a period of time, said Sharma.
He quickly added that following the formalisation of an order receipt of cash, the project cycle might appear to be small. However, it gets extended over time.
Also read: India to soon be world’s largest defence manufacturing base, says PM Modi at Aero India 2023
Also read: Aero India 2023: 809 companies to attend, 251 MoUs worth Rs 75,000 cr expected to be inked
The India unit of Swedish-Swiss multinational corporation ABB has said that it is looking at acquiring smaller companies in the country to expand its business in here.
And ABB India proposes to undertake this bolt-on acquisition strategy through as much as 50 per cent of excess cash balance of Rs 3,616 crore available on its books organically, the company’s country head & managing director Sanjeev Sharma told Business Today on Saturday.
“We are looking at opportunities to bolt on acquisitions in segments where we can add further value to our customers. We have a good balance sheet with strong cash flows and plenty of land available next to our plants in India,” said Sharma.
While refusing to provide a firm guidance, Sharma said that ABB India could be looking at in any of its 18 verticals to complement its product offerings or digitalisation for the proposed expansion. The verticals include everything from power systems to automation to robotics.
“ABB’s characteristic is that it continues to evolve with the market expectations. That’s why we continue to acquire new technologies, new acquisitions and solutions in areas in which we seek presence,” Sharma told Business Today.
Sharma said that the company now had a quality mix of products, with 70 per cent of the business being delivered by their factories in conventional engineering. The balance 15 per cent is contributed by services and performance-based solutions.
“This 70 per cent base business is a fast-moving business. That’s how we have evolved over a period of time, said Sharma.
He quickly added that following the formalisation of an order receipt of cash, the project cycle might appear to be small. However, it gets extended over time.
Also read: India to soon be world’s largest defence manufacturing base, says PM Modi at Aero India 2023
Also read: Aero India 2023: 809 companies to attend, 251 MoUs worth Rs 75,000 cr expected to be inked