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ABB Power Products and Systems expects prices to remain under pressure due to increasing competition and the the government’s call for a lower price discovery in rail and solar projects.
ABB Power Products and Systems India Limited operates as Hitachi ABB Power Grids in India and is listed on the NSE and BSE as PowerIndia.
“We are confident that we have the expertise and footprint to build on the momentum and power ahead,” the company said in its Directors’ Report Management Discussion to its shareholders.
“While various macro parameters had been putting a downward pressure on economic growth, the Covid-19 outbreak has pushed many projects and orders to the back-seat. However, the government spending in infrastructure and efforts to boost credit liquidity will provide a mild thrust for industry Capex,” the company added.
As normalcy is restored, renewables and rail will continue to be areas of robust growth, while the data centre and e-mobility markets will unleash opportunities for new business models and overall sector growth. The company said that “more clarity and policy impetus from the government will help to speed up investments.”
The company said it has been responding to the Covid-19 pandemic by looking after its entire ecosystem of employees, customers and suppliers, with focus on health awareness and safety measures. “As a responsible corporate citizen, your company has always maintained strict adherence to the direction/ guidelines of central, State and local authorities.”
Outlook
On the outlook for the sector, the company said: “The power grids market is driven by an increasing adoption of renewable energy, rising demand in emerging countries with minimum environmental impact, the expansion of distributed power sources such as electric vehicles and storage batteries, deregulation of the electric power sector in countries and regions, and advances in electric power system reform.”
It added that digitalisation in power assets, systems and processes has created the environment of energy Internet with real-time integrated grid control system and asset performance management with predictive maintenance technologies.
“Our company is continuously developing new features, products and solutions based on core power technologies to support this evolution,” it said. “Industry growth being largely muted in 2019, we are looking to play an active role in railway electrification with 27,000 km yet to be electrified by 2023, in regional transport ventures such as NCRTC (Delhi – Meerut) and high-speed rail (Ahmedabad – Mumbai), and in metro projects that are either under execution or in a planning,” it added.
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