ABB India seen as outsourcing hub

ABB India is set to become a major outsourcing hub for its parent company in the financial year 2004.

Ravi Uppal, vice-chairman & managing director, ABB India, said, "The company is looking at extensive possibilities of equipment outsourcing in the coming months. We are targetting a quantum leap in our exports."

At present, the ABB group outsources three products from the Indian operations. "The parent company has decided on a policy that ABB's products worldwide will not bear the manufacturing country's name, but only the ABB tag. The increase in outsourcing from India is in line with this objective," Uppal said.

The company is also planning a capital expenditure of at least Rs 50 crore to meet the increasing demand.

"We are looking at a similar capital expenditure like the previous year to increase our production capacity. While it could be through greenfield or brownfield projects, we are also open to acquisitions and mergers for products which compliment our existing business areas," Uppal told Business Standard.

Both acquisitions and capacity expansion will be funded from internal accruals, Uppal added. "ABB India has free cash reserved of close Rs 400 crore, of which Rs 200 crore is the surplus which can be utilized for enhancing the company's total capacity," K Rajagopal, chief financial officer, ABB India, said.