ABB India: CEO Targets Top 3 Global Market Rank Before 2030

Introduction

In a clear signal of India's rising importance in the global industrial landscape, engineering and automation major ABB is aiming to elevate its Indian operations to become the company's third-largest market globally, well before 2030. Speaking at the World Economic Forum in Davos, President and CEO Morten Wierod outlined an ambitious growth strategy for India, positioning it as a central pillar for both market expansion and strategic manufacturing. The company enters 2026 with its largest-ever order book, underscoring the strong momentum behind its core businesses.

A Strategic Vision for Growth

ABB's leadership has set a clear challenge for its Indian subsidiary, which is currently the company's fourth or fifth-largest market. The goal is to surpass other key regions and secure the number three spot, behind only the US and China. "I hope it will be earlier," Wierod stated, indicating a sense of urgency and confidence in the Indian market's potential. This vision is built on the twin pillars of electrification and automation, which Wierod described as multi-decade shifts rather than short-term cycles. These trends are accelerating in India, driven by economic growth, rising living standards, and massive investments in digital infrastructure like data centers.

India as a Global Manufacturing and Export Hub

Central to ABB's strategy is the strengthening of India as a manufacturing and export hub. The company already follows a 'local for local' policy, with over 85% of the products sold in India being manufactured within the country. This approach enhances supply chain resilience and cost-competitiveness. Wierod emphasized India's unique advantages, including a strong cost structure, deep engineering capabilities, and proven execution. Quoting Frank Sinatra, he noted, "If you can make it here, you can make it anywhere," highlighting India's role as a competitive base for serving global markets. ABB India currently exports to the Middle East, Africa, and Latin America, with plans to deepen this role significantly.

Electrification and Energy Transition Drive Demand

India is at the forefront of a major energy expansion, a trend that aligns perfectly with ABB's core offerings. Wierod highlighted India's effectiveness in adding renewable capacity, particularly in solar and wind, while simultaneously modernizing its grid infrastructure. As electricity demand surges, automation becomes critical for managing the load efficiently. "Automation is needed to use electricity smarter," Wierod explained. ABB's solutions in grid automation, load balancing, and smart energy management for buildings and industries are essential for reducing stress on power networks and ensuring economic resilience.

Financial Strength and Strategic Investments

ABB India's ambitious plans are supported by a robust financial position. The company reported strong Q2 2025 results with revenues of ₹3,175 crore and a record order backlog of ₹10,064 crore. It has maintained double-digit PAT margins for eleven consecutive quarters, demonstrating operational efficiency. Furthermore, the company is debt-free and holds significant cash reserves, providing the flexibility to invest in capacity expansion, R&D, and strategic acquisitions. Recent acquisitions like BrightLoop and Sensorfact have bolstered its capabilities in electrification and digital automation, respectively.

Focus on High-Growth Segments

ABB is strategically positioned to capitalize on India's fastest-growing sectors. Data centers, a key segment for the company, already account for 6% of its global revenues and are expanding rapidly in India. Other high-growth areas include railways, electronics, water infrastructure, and renewable grid integration. The company's partnership with Nvidia further strengthens its offerings for the AI and data center boom. This diversified portfolio allows ABB to capture opportunities across a broad spectrum of the Indian economy, from heavy industry to advanced technology.

Corporate Restructuring and Future Outlook

To sharpen its focus, ABB is planning to spin off its robotics division into a separately listed entity by the second quarter of 2026. This move is intended to unlock shareholder value and allow the robotics business to compete with greater agility in a fast-evolving market. Looking ahead, management remains optimistic, citing strong macro tailwinds from government spending on infrastructure, the push for green energy, and the 'Make in India' initiative. With a strong order book and a clear strategic direction, ABB India is well-positioned to execute its growth plans and play a pivotal role in India's industrial transformation.