ABB India
Committed to sustainability by 2030
As the local listed subsidiary of Switzerland-based ABB Group, ABB India undertakes engineering and construction projects and manufactures heavy engineering and industrial equipment. It has four main business segments in motion, robotics and discrete automation, electrification and process automation.
The company’s orderbook has been growing as activity levels in India are on the rise again. We like the company because it is prudent, well-managed and feeds into a wide variety of industrial and power sectors. Its strong balance sheet and ability to generate cash is likely to weather future economic disruptions, while the high quality of its product and technology portfolio will benefit from an increasing demand for energy efficiencies from customers and regulators. ABB India’s solid reputation and technology support also mean that the company is able to charge a premium for its products and services in a niche market.
More broadly, we expect ABB India to be among the beneficiaries of rising government capital expenditure. This reflects the government’s continued focus on improving infrastructure, evident in developments such as the launch of the National Infra Pipeline and National Monetization Pipeline to fund infrastructure projects.
On the ESG front, ABB India is not rated by MSCI but its parent – ABB – holds an AA rating. As part of its 2030 sustainability strategy, ABB India aims to support customers and suppliers to reduce greenhouse gas emissions while achieving carbon neutrality in its own operations. ABB’s emissions reduction targets have been validated by the Science Based Targets initiative as being in line with the 1.5°C scenario of the Paris Agreement.
ABB India’s involvement in industrial automation, robotics and motion also means that it is providing industry solutions to help boost productivity, which aligns it with UN sustainable development goals to achieve a more productive and sustainable future through technological upgrading and innovation.
Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.
The company’s orderbook has been growing as activity levels in India are on the rise again. We like the company because it is prudent, well-managed and feeds into a wide variety of industrial and power sectors. Its strong balance sheet and ability to generate cash is likely to weather future economic disruptions, while the high quality of its product and technology portfolio will benefit from an increasing demand for energy efficiencies from customers and regulators. ABB India’s solid reputation and technology support also mean that the company is able to charge a premium for its products and services in a niche market.
More broadly, we expect ABB India to be among the beneficiaries of rising government capital expenditure. This reflects the government’s continued focus on improving infrastructure, evident in developments such as the launch of the National Infra Pipeline and National Monetization Pipeline to fund infrastructure projects.
On the ESG front, ABB India is not rated by MSCI but its parent – ABB – holds an AA rating. As part of its 2030 sustainability strategy, ABB India aims to support customers and suppliers to reduce greenhouse gas emissions while achieving carbon neutrality in its own operations. ABB’s emissions reduction targets have been validated by the Science Based Targets initiative as being in line with the 1.5°C scenario of the Paris Agreement.
ABB India’s involvement in industrial automation, robotics and motion also means that it is providing industry solutions to help boost productivity, which aligns it with UN sustainable development goals to achieve a more productive and sustainable future through technological upgrading and innovation.
Companies selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.