ABB India eyes buyouts

Enters asset management services

ABB India, the power systems and automation player, which is already growing at a fast clip, is taking steps to grow even faster "� both organically and inorganically.

"We are looking at acquisitions in India," ABB vice-chairman and managing director Ravi Uppal said.

He also elaborated that the firm was also actively pursuing a new line of business, which was a part of its services thrust "� asset management services.

This, along with power systems consulting, will aim at adding a new revenue stream by packaging the firm's core equipment business with value-added services.

"This will be our way of growing ahead of the industry," a company source said. As this business is less than a year-old, he declined to reveal the targets or customer wins but indicated "the concept has had some success in terms of initial breakthrough."

ABB is hopeful that its USP in seeking such business will be its domain expertise as also relieving firms of the need to support maintenance crews. "We will maintain and manage assets for a fee, which our customers should find attractive as it will lead to higher up-time at a lower cost."

The two areas the firm has in mind, which are also its key business segments, are power systems and automation.

ABB reported 55 per cent jump in the net profit for the third quarter ended September 30, 2006, at Rs 82.1 crore, compared with the corresponding quarter of 2005-06.

The company's total income was up 52 per cent to Rs 1,093.5 crore for the quarter-ended September 30, from Rs 719.9 crore in the corresponding period of last year.