 "A man walks past an advertisement of Reliance Industries Limited at a construction site in Mumbai")
This article has been modified. Please see the clarification at the end.
Mukesh Ambani's Reliance Industries (RIL) is set to tie up with the Switzerland-based ABB group for partnerships across their businesses.
Mukesh Ambani's Reliance Industries (RIL) is set to tie up with the Switzerland-based ABB group for partnerships across their businesses.
Ulrich Spiesshofer, chief executive officer (CEO) of the latter group, met Ambani on Wednesday in Mumbai as part of a four-day visit to India.
Spiesshofer confirmed talks on a technology tie-up with RIL. The focus of collaboration is likely to be digitisation. "We are long-term business partners," he told this newspaper. ABB is a leader in digitalisation technology.
Asked if this could turn into an equity partnership between India's biggest private sector energy company and a global technology provider in infrastructure and energy, he said it would be "speculative" to comment.
The group, which Spiesshofer says is in a transformative stage, is also undertaking mergers and acquisitions (M&As) in a big way. In the past five years, deals worth around $12 billion have been closed. "When the time is right, we will make another move (on M&A)," he said.
Asked if ABB would make acquisitions in this country, he replied, "No geography is ruled out. India is a country where you have attractive companies."
ABB is currently implementing contracts for electrification and automation contracts at RIL's ongoing petrochemical project at Jamnagar in Gujarat. And, one for a combined cycle power plant in Hazira for the company.
RIL is the latest entrant into the telecom business in India, with prime focus on data services through its Reliance Jio and voice in partnership with Anil Ambani's Reliance Communications.
One of three focus area for ABB's new global strategy is business-led collaborations. "We are driving a new way of collaborations," said the CEO.
The other two being profitable growth and relentless execution. In the past 18 months, it tied up with Microsoft, Samsung, Philips, Cisco and Bosch.
Spiesshofer ended his visit after meetings with finance minister Arun Jaitley and commerce minister Nirmala Sitharaman on Thursday. On Tuesday, he had an hour-long meeting with Prime Minister Narendra Modi, where he made a case for keeping the reform momentum going for the power sector in India. He was accompanied by Sanjeev Sharma, managing director, ABB India. Renewable energy, rural electrification and energy efficiency initiatives of the government came up for discussion. And, rail-based transportation systems.
Spiesshofer also visited Chennai, on Tuesday, where the group signed memoranda of understanding with the Indian Institute of Technology for building micro-grids for rural electrification and energy storage.
CLARIFICATION
An earlier version of this article was published with the title "ABB, Reliance in talks for telecom partnership". It was mentioned in the earlier version that ABB and Reliance Industries were planning a tie-up in telecommunications, but the correct position is that they will partner across their businesses. The error is regretted.
CLARIFICATION
An earlier version of this article was published with the title "ABB, Reliance in talks for telecom partnership". It was mentioned in the earlier version that ABB and Reliance Industries were planning a tie-up in telecommunications, but the correct position is that they will partner across their businesses. The error is regretted.
