ABB Starts New Factory In India - Analyst Blog

Recently ABB Ltd. (ABB) inaugurated a wind power generator factory in Vadodara, India. This is the company’s fourth wind power factory in India, engaged in the supply of wind power generators to power plants in India as well as worldwide. The wind power generators are vital part of wind turbines.

The factory in Vadodara, of 16,000 square meters, is expected to have monthly production capacity of 100 units and will employ approximately 150 people. This is a part of the company’s Discrete Automation and Motion business.

India is a growing market, with an increasingly huge population, and is presently the world’s fifth-largest user of wind power. The rising demand of energy, with development of infrastructure and rising population, has increased the need for energy efficient and renewable means of power generation in India, as well globally.

An energy-efficient wind power generator, as provided by ABB Ltd., not only reduces pollution, but also increases the production capacity of the plants. Construction of renewable means of power generation, apart from providing a clean and safe environment, also creates employment opportunity for the local people, hence leading to economical and social development of the region.

ABB Ltd. is a major player in the wind energy industry with fourteen of its business units providing products for wind power applications. Despite the global economic recession, investment in this industry is expected to remain robust, due to the potential of wind to become a primary renewable energy source. The Department of Energy (DOE) estimates wind to provide 20% of power generation in the United States. The company is also seeking to replicate this leading position in the rail industry by supplying traction motors, converters and transformers that offers the best value, performance, and integrated functionality for the end product producer in the rail industry. Both these markets are expected to record above-average growth over the next 3-5 years and thus provide ABB the opportunity for above-average growth.

Based in Zurich, Switzerland, ABB Ltd. is a power and automation technology company with activities in five divisions. Power Products and Power Systems supply products and complete Transmission and Distribution (T&D) solutions to utility and industrial customers. Discrete Automation & Motion, Low-Voltage Products and Process Automation supply products, systems and solutions to customers across nearly all segments of the process and manufacturing industries, as well as specialist end markets, such as marine and utility.

The company operates in approximately 100 countries and structured its global organization into five regions, Europe, Americas, Asia, the Middle East, and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).

We have a Zacks #3Rank (short-term Hold recommendation) on ABB Ltd.

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ABB Starts New Factory In India - Analyst Blog

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