Comments
Hitachi ABB Power Grids expects demand for its products and services to pick up in 2021 according to its India Managing Director, N Venu. Hitachi ABB Power Grids, a new multi-billion-dollar global technology business, was launched earlier this week following a joint venture between Hitachi and ABB Power Grids.
Commenting on the growth recovery of the company’s products and services after Covid-19 lockdown, Venu said, “We have now reopened our factories. Today, we are working at more than 90 per cent capacity. Many of our customers are asking us to supply in line with the existing contracts. We definitely have a short-term challenge because of the quarter we did not work. The supply chain and other associated peripherals are slowly coming up to speed.”
“We believe that the long-term demand drivers are all intact and slowly over time, somewhere around 2021, we see the demand to pick up,” he added.
“We have a short-term hit; but we also have a huge order backlog to manage the impact. Our strategy to overcome the short-term impact is to look at various markets,” Venu said.
Localisation push
Commenting on the localisation push of the government, he said, “Localisation is not a challenge for us. There has been a greater amount of localising efforts in the last few years. But we have been doing this for a longer time. Today, we have a complete range of products that are fully localised.”
“We have factories in five locations, and we are able to provide equipment, products, systems or services that are completely localised. From time to time, we do get some components sourced from our feeder factories around the world.”
Under the joint venture agreement, Hitachi and ABB had assessed the enterprise value of the company operating power grids business, separated from ABB, at $11 billion. The purchase price of the 80.1 per cent stake is approximately $6.85 billion. Hitachi will acquire the remaining 19.9 per cent stake of Hitachi ABB Power Grids to make it a wholly owned subsidiary after 2023, a company statement had said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.