ABB group, the Swedish engineering major, has applied to the Foreign Investment Promotion Board (FIPB) to set up a 100 per cent subsidiary to be named ABB Industrial IT Development Center Ltd.
The subsidiary will provide quality, cost efficient software design and development services for the group's requirement all over the world.
ABB Holdings South Asia will hold 100 per cent in the new company which will be headquartered initially in Mumbai and with operations in Bangalore.
The proposed company will support ABB group companies worldwide in their requirement for software development and services. The proposed company will also provide similar services to third-party companies in India as well as abroad when it becomes feasible.
The move by ABB is part of its new strategy in which India will become a key centre for research and development of software products, and industrial products.
The Rs 45 lakh initial investment in the proposed company will be made by ABB Holdings (South Asia) Ltd out of its own funds. ABB Holdings (South Asia) is a 100 per cent subsidiary of ABB, Zurich. All the investments of ABB Holdings South Asia are financed from the share capital infused by ABB, Zurich. The existing investment shall be made available from the funds currently available with ABB Holdings South Asia.
ABB's application to the FIPB requests the government for clearances on three issues: one to register and incorporate the company, two to subscribe to 50,000 equity shares of Rs 10 each of ABB Industrial IT Development Center Ltd and further invest in 4,00,000 equity shares of Rs 10 each of the same company on its incorporation.
Earlier the centre was to be set up primarily for software development and later on the group decided to expand the scope of the centre to include industrial research and development. The centre in India will be the one amongst the four which the company is setting up or have set up in various locations globally.
