abb india ltd share price Management discussions

Economic and market overview

In 2023, both global and Indian landscapes were marked by significant events. While global markets experienced a mix of news, India emerged as the fifth largest economy worldwide and maintained its reputation as the fastest growing economy.

It was a year characterized by resurgence in capital expenditure, driven by government initiatives to pursue one of the worlds largest infrastructure expansion programs. This endeavor not only spurred private investment across a broader spectrum of industries but also diversified the base of industrial segments experiencing growth.

Indias GDP growth grew by 7.8 percent year-on-year in the first quarter of the financial year (April to June 2023) with a higher than expected 7.6 percent in the July to September 2023 quarter, as per initial estimates from the National Statistical Office. In its October forecast, the IMF had noted that Indias real GDP would increase beyond 6 percent in 2023 and 2024. Further, the GDP is projected to grow between 6 and 7.1 percent annually in fiscal years between 2024 and 2026 as per S&P Globals report.

The manufacturing sector currently accounts for about 17 percent of Indias GDP, which is expected to grow to 21 percent in the next 6-7 years. The government aims that Indias manufacturing market to reach around USD 1 trillion by 2025-26.

The Manufacturing Purchasing Managers Index (PMI) throughout 2023 remained above 50 indicating an expanding output. After a dip in October, it rebounded in November 2023 to 56, signaling 29th consecutive month of expansion in factory activity.

Indias manufacturing sector also witnessed growth in new orders rebounding from Octobers one year low and exports extended their growth streak for the 20th month. Electronics manufacturing services in the country has also stepped up significantly driven by higher share of outsourcing by Original Equipment Manufacturer (OEM) and the shift from contract manufacturing to Original Design Manufacturing (ODM).

Despite experiencing volatility throughout the year, the Indian Rupee fared relatively well compared to other emerging market currencies. It depreciated by 0.29 percent between January 1 and mid December, dropping from INR 82.7 to approximately INR 83.01 by December 15, marking an 11 percent decrease from the previous year.

Various factors contributed to this fluctuation, including geopolitical tensions, monetary policy adjustments in the Western world, trade imbalances, and fluctuations in commodity prices. Nonetheless, Indian markets reached unprecedented heights, with the Sensex and Nifty indices hitting record levels of 70,000 and 21,000 respectively. Furthermore, the IPO market remained vibrant throughout the year, witnessing a diverse range of companies entering the capital markets, spanning from traditional industries to cutting edge technology based firms.

With a keen focus on sustainability, the Indian government has intensified its efforts in this area. Notably, India holds the third position in the Renewable Energy Country Attractiveness Index, underscoring its commitment to renewable energy sources.

Despite global uncertainty and market volatility, Indias appeal as an investment hub has only strengthened. By August 2023, the country boasted robust foreign exchange reserves totaling USD 594.90 billion. Further, Indias stature in innovation has ascended significantly, as evidenced by its 40th position out of 132 economies in the Global Innovation Index 2023. Notably, the number of patents granted surged eightfold from 2014-15 to the period up to November 30th, 2023, reflecting Indias thriving innovative landscape.

Operational overview

The countrys economic growth has been propelled by various factors, such as substantial public investment in infrastructure, robust macroeconomic indicators, heightened foreign investment inflows, vigorous corporate expansion, and strategic policy interventions by the Reserve Bank of India (RBI). Additionally, there has been consistent emphasis on enhancing regulatory frameworks and embracing digital transformations to streamline transactions for diverse stakeholders.

Leveraging the positive macro landscape, the Company continued its focus on solid growth fundamentals whilst reinforcing the highest sustainability standards. Simultaneously, ABB India has also undertaken a 360-degree integrated program with initiatives on various facets of employee well-being from health to mental and financial wellness.

The Companys agile business model and portfolio ensured conversion of opportunities, maximally optimizing the countrys conducive and relatively stable environment in an otherwise volatile global weather, leading to a quantum leap in performance. Strategic investments for new facilities, product launches, continuous focus on localization and launch of online business models supported this journey of consistent, profitable growth.

The year was marked by several milestones across the 19 divisions of ABB Indias four business areas of Electrification, Motion, Process Automation and Robotics and Discrete Automation. Another year of successful implementation of the ABB Way decentralized model of operations where 19 business divisions fully aligned with their global also worked closely with the country team to secure various milestones at the same time adding value and catering to the needs of customers and stakeholders.

During the year more than 10 facilities across multiple locations from offices to shopfloors were modernized, refurbished, and inaugurated. These included a most modern and sustainable switchgear factory in Nashik, new lines for manufacturing energy efficient drives and a Motion services workshop.

For customer and partner outreach, ABB India has been steadily increasing its presence across tier II and III cities in serving 23 market segments. This has been inspired by the growth of entrepreneurial spirt of channel partners, customers, system integrators and the pace of development of infrastructure and industrial growth in these markets.

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One of the 5 sites

The Energy Efficiency Movement continued to gain traction in 2023 with multi city symposiums organized by the Motion business area across the country to accelerate energy efficiency initiatives with partners, customers, OEMs and other members of the stakeholder universe.

In 2023, ABB India attained record breaking orders amounting to INR 12,319 crore, with revenues reaching INR 10,447 crore. The profit after tax for the year totaled INR 1,248 crores, exhibiting growth from INR 1,026 crores in 2022. As a result, the earnings per share for 2023 surged to INR 58.90 per share, up from INR 48.40 per share in 2022.

Operational excellence

In 2023, ABB India continued its journey of "Making in India for India and the world". This also follows the paradigm to combine the best of global products with local engineering supplemented with sustainable products and processes. The newly inaugurated gas insulated switchgear factory is an example which will manufacture eco-efficient switchgear PrimeGear™ ZX0, with SF6 free alternatives for applications up to 12 kV reducing the global warming potential by 100%.

This would be a key component of sustainably enhancing power distribution in line with the massive infrastructure expansion program. ABB Indias Electrification business launched MegaFlex DPA (Decentralized Parallel Architecture) UPS solutions for the Indian market. The first-of-its-kind sustainable UPS which is part of ABB EcoSolutions™ portfolio and complies with the ABB circularity framework and reduces engineering footprint by 45 percent.

This product is particularly tailored for customers in the energy intensive data center segment, representing a pioneering offering in the Indian market with circularity compliance. Moreover, it aligns seamlessly with customers sustainability goals and commitments.

The Measurement and Analytics division of Process Automation business area also introduced the ABB Ability SmartMaster, an asset performance management platform designed for the verification and condition monitoring of instrumentation and field devices across various industries in India. The platform remotely collects, analyses, and verifies diagnostic data (flow, level, temperature, pressure, etc.) from instruments without disrupting ongoing measurement tasks.

The Company also deployed different strategies as per the ‘ABB Way to complement operations of different divisions. This included milestone based execution for projects in automation business, working closely with channel partners and distributors to fill white spots for Electrification and Motion, and carving out diverse engagement and collaboration models for OEMs, system integrators and end customers.

On the other hand, the Robotics business worked seamlessly with system integrators to deliver and customize value proposition befitting different segments. In some cases, the company also engaged in strategic partnership to supply propulsion systems for metro rolling stock projects in India and also an MoU with a customer to work together to co-create innovative models and technologies to help reduce the carbon footprint of steel production.

As per the ABB Way, the Company aims to strike a balance between a decentralized safety approach and corporate oversight. This strategy allows individual units to tailor safety programs to their specific needs while ensuring alignment with the overall safety goals and values of the organization. The focus areas in 2023 include:

• Regular meetings and committees provided a platform for communication, coordination, and the sharing of best practices across different divisions of the company

• Focus was on the self-assessments in the form of risk based Internal audits

• Focus on electrical safety program ECAP (Electrical Competency and Assessment program) for competency development

• Focus on Road safety programs – basic road safety and defensive driving

• Overall focus on health and well-being of employees and creating awareness on mental health

In 2023, ABB India has taken its sustainable operations to the next level across all its manufacturing facilities in India. Whether its utilizing green energy or optimizing productivity within existing spatial constraints, ABB India is actively engaged in implementing initiatives across its locations and divisions. These efforts focus on initiatives such as water and waste recycling, achieving zero waste to landfill, and promoting sustainability. Moreover, ABB India is diligently working on extending producer responsibility for plastic, battery, and equipment, while also pursuing environmental product declaration in accordance with ABBs circularity framework for products.


With its diverse portfolio, ABB India is strategically positioned to expand its market presence, capitalizing on the upsurge in economic activities across various sectors including power transmission, clean energy, railways, metro, and public infrastructure. Government investments provide further support to these endeavors. Additionally, ABB is at the forefront of innovation in sectors such as data centers, electronics, and logistics, driving towards sustained growth.

The national elections in 2024 is likely to be a pivot between two halves of 2024. The focus on local manufacturing with Production Linked Incentive (PLI) scheme in digital India and digital infrastructure, high end local manufacturing including electronics, the expansion of railways and metros and continued initiatives for energy transition and security are all drivers which augur well for ABB Indias growth.

Key factors to keep a close eye on include domestic pressures stemming from inflation rates, potential shocks in oil prices or food costs. Given Indias agrarian economy, vulnerability to climate change is a significant concern. Additionally, global tensions and geopolitical escalations may disrupt trade routes and supply chains, necessitating continuous vigilance. Elections scheduled in 64 nations worldwide, including the US, demand attention. Moreover, the monetary policy decisions of the US Federal Reserve in light of these elections and their impact on markets and foreign investments require careful observation.


Summarized performance:

( in crore)

Particulars* 2023 2022 Orders 4,514 3,716 Order backlog 1,959 1,583 Revenue 4,177 3,530 Results (Profit before interest & tax) 775 488

Pl. Note in 2023, EMAB is not part of EL

Segment performance

Electrification business witnessed significant growth and increase in market share in 2023. The growth primarily stemmed from a favorable business environment and a strategic approach tailored to serve the market effectively through appropriate channels and product offerings.

Our focused efforts in various leading segments like renewables, data centers, buildings, chemicals, oil & gas, metals, railways and food & beverages have contributed positively to this growth. While local demand continued to drive business growth, exports also contributed significantly to the topline.

Major orders booked during the year:

• Low Voltage and Medium Voltage Components/ Solutions for the large International Airports in North & West

• 11kV GIS for supplying power to one of the Worlds highest rail bridges in Northern part of India for premier Rail Tunnel project

• Significant Compact Substation orders for ASIAs 2nd longest sea link bridge

• Formula ACBs and Tvisha WA range orders for 3 district level hospitals & medical colleges (part of the Governments key initiative of Healthcare for All) in Rajasthan

• Low Voltage and Medium Voltage Circuit Breakers modernization with the upgradation of protection relays for one of the largest oil & gas customers in South

• Supply of traction duty low voltage switchgear components to Indias flagship semi high speed rail project

Major orders successfully commissioned/supplied during the year:

• Commissioned first Eco-GIS at a prestigious chemical plant in India

• Supplied and commissioned Low Voltage and Medium Voltage Circuit Breaker Modernization with upgradation of protection relays from one of the largest oil & gas customers in the south

• Commissioned various data centers across the country contributing to ‘Digital India

• Supplied ArTuK with ABB Ability solutions to a leading hospital in Mumbai

• Installed ArTuK for a global pharma player, its first installation

• Supplied Low Voltage system panels in one of the largest sugar plants in south

Segment outlook

The countrys focus on energy transition, energy efficiency and electrification of networks, et cetera are likely to provide more business opportunities. The demand for state of the art and sustainable power equipment as buildings and cities strive for greater efficiency and clean technology will maintain momentum. Another catalyst to the business development would be the extensive and varied channel partner network to penetrate maximum segments.

The evolving needs of companies in tier 2 and 3 cities for digital and sustainable products are leading the way. The engagement with customers in emerging segments green hydrogen, semiconductors, battery manufacturing, energy storage, etc., as well as established segments like renewables, data centers, metals, cement, oil and gas, and food & beverages are likely to lead demand growth.

The infrastructure push to build roads, ports, expand railway network, tunnels, with increased capital expenditure outlay will continue to catalyze capacity expansion and keep a buoyant demand for safe and sustainable electrification solutions. The government policies, push on Digital India, data localization and classification of data centers as infrastructure assets in a young industry flexible to adopt greener norms would all be drivers of this segment.


Summarized performance:

( in crore)

Particulars 2023 2022
Orders 5,158 3,662
Order backlog 3,506 2,106
Revenue 3,785 3,367
Results (Profit before interest & tax) 601 412

Segment performance

In the fiscal year 2023, Motion business exhibited robust performance, amidst the backdrop of growing urbanization and industrialization leading to increased energy consumption. The business solidified its position in the local market, driven by consistent quarter-on-quarter growth and positive developments in both product and geographic mix.

In 2023, the Motion business demonstrated yet another year of exceptional performance, with growth stories resonating across all divisions. With a strategic emphasis on overseas markets, exports surged by approximately 28 percent. The business also secured robust packaged orders for drives and motors, reaffirming its domain expertise and extensive product offerings.

Additionally, the Motion team expanded its channel partner (CP) network by appointing new CPs in Tier II, III, and IV cities, signaling a strategic focus on emerging markets. This emphasis was evident through consistent engagements with stakeholders in these burgeoning regions. Throughout the year, the channel partner business experienced an impressive 18 percent increase in both orders and revenues.

Several strategic initiatives were undertaken to bolster the businesss technological capabilities. The inauguration of a new production line for Drive modules marked a significant milestone. The expansion of R&D and engineering footprint in India by System Drives division showcased a commitment to innovation and technological advancement. The launch of high voltage NEMA AMI induction motors further expanded the businesss global footprint. The service team opened a new Drives Service Workshop at Vadodara and extended its support to customers in more than 22 countries, providing commissioning and preventive maintenance services.

The business demonstrated strong commitment to sustainability and amplified promotion of energy efficiency to its customers and also within its internal operations. Motion manufacturing units in Faridabad, Bengaluru and Vadodara continued to advance incorporation of renewable energy sources into its operations.

Through the implementation of sustainable business practices in its operations, the company not only sustained but actively advanced its endeavors in transitioning towards cleaner and greener energy sources. Acting as catalysts to accelerate energy efficiency initiatives, Motion team facilitated meaningful engagement and collaboration within the industry. With Energy Efficiency Symposiums in Bengaluru, Hyderabad, New Delhi, and Vadodara, the team brought together key industry stakeholders, including OEMs, consultants, and representatives from industry bodies. The efforts resulted in higher adoption of Drives for energy saving applications, contributing to an annual energy saving of > 3TWh. Similarly, sales of IE3 and IE4 LV motors grew by more than 25 percent and contributed ~160 GWh of annual energy savings (compared to IE2 MEPS).

Major orders booked during the year:

• System Drives secured a large packaging order, highlighting its strong position in the market. In addition, System Drives also implemented its cutting edge solutions for diverse industry leaders, including a major player in the metals sector, a leading gas company, and an oil rig solutions provider

• Demonstrating our commitment to energy efficiency, System Drives also delivered state-of-the-art solutions for a leading steel company, contributing to sustainable practices

• Motion traction solutions were also supplied for a multinational railway transportation company, emphasizing global reach. The division also supplied solutions for metro systems in Bhopal and Indore, as well as for the Indian Railways

• NEMA motors business achieved a milestone by securing its largest order for mining motors. This order is set to support a significant surface and underground mining project in India

Further diversifying our portfolio, Motion business received multiple orders from sectors such as cement, oil & gas, water & wastewater, underscoring the trust placed in Motion solutions. The channel to market through EPCs, CPs, and direct end users continued to grow. The contributions from Original Equipment Manufacturers (OEM) and System Integrator businesses doubled and were particularly noteworthy.

Awards and recognition

The businesss commitment to innovation was acknowledged at prestigious industry awards, including the ACREX India Award of Excellence 2023 in the Innovation category for the ABB Ability™ Digital Powertrain solution, and an Innovation Award for the IE5 SynRM motor at the Engineering Excellence Award.

Motion business demonstrated resilience, adaptability, and strategic prowess in the dynamic market conditions of 2023, paving the way for sustained growth and market leadership. The consistent focus on innovation, channel expansion, and technological advancements positions the business for continued success in the future.

Segment outlook

The market for energy efficient products and solutions, given the focus on sustainability, is likely to provide business impetus in our existing process and discrete manufacturing industries, as well as emerging segments. With rapid urbanization, energy transition and eco-system evolution, various offerings of the Motion business will be in alignment with growth.

Transportation would be another driver with metro rail network expansion in cities and new technology adoption and higher speed travel modes in railways, as well as transition to EV for off highway vehicles. Market expansion to tier 2 and 3 is likely to continue and channel partners will play a key role. Industrys focus on renewables, ethanol blending, and green hydrogen places it at the forefront of sustainable energy initiatives, thus positioning Motion to adeptly leverage these promising opportunities.

The demand for high reliability and intelligence in motion solutions has gained momentum and further fortifies the digital penetration of motion offerings. Barring a probable slowdown during elections, the focus on domestic manufacturing with PLI will further growth opportunities with strong demand market on the industrial front. Digitalization and digitization of industry and commerce is driving strong growth of data centers where our energy efficient solutions play a key role. Customer expectations for high level of reliability, uptime and machine intelligence have accelerated development of innovative service portfolio and are driving growth in service business.

Process Automation

Summarized performance:

( in crore)
Particulars 2023 2022
Orders 2,471 2,503
Order backlog 2,880 2,645
Revenue 2,236 1,573
Results (Profit before interest & tax) 275 201

Segment Performance

The performance of the Process Automation segment in the year was robust, driven by opportunities emerging from various sectors. These included city gas distribution, terminal automation, life sciences, metals & mining, and cement industries. Additionally, orders were received from refineries and the petrochemical industry for analyzers, while instrumentation orders were secured from upstream energy and power OEMs for pressure transmitters.

The demand for digital asset management solutions, aimed at enhancing operational efficiency across industries such as water, wastewater, chemical, oil & gas, among others, led to the introduction of ABB Ability™ SmartMaster specifically for the Indian market. The segment adopted a strategic approach, focusing on milestone based execution and value based selling, which contributed significantly to its performance. Furthermore, service and exports played a pivotal role in driving the segments growth trajectory.

Major orders, key project commissioning, and milestones during the year:

• Bagged an order from Reliance Life Sciences to deploy automation and control solutions for their biosimilars and plasma proteins manufacturing facilities in Nashik, Maharashtra

• Secured the largest ever service order from a power utility major for pan India HMI upgrade and implementation of cybersecurity suite

• Order from a leading oil and gas supplier for deploying ABB Ability™ SCADAvantage along with technology platform ABB Ability™ Genix, RTUs, and connectivity components across the gas distribution pipeline covering 25 geographical areas distributed across 30 cities in India

• Order from a leading aluminum manufacturer in India to provide end to end solutions from design to commissioning of the electrical package - the scope comprises Low Voltage and Medium Voltage panels, drives, control system infrastructure (SCADA), transformers and auxiliary components

• Completed a pioneering upgrade in Kingdom of Saudi Arabia, replacing Low Voltage Cycloconverters with LV ACS880 Multi Drives at the Hot Strip Mill Facility

• The Process Industries team received a Certificate of Recognition from Honorable Chief Minister of Punjab, Mr. Bhagwant Mann for Color Coating Line project for a steel major

• Orders for pressure transmitters and analyzers from Petrochem companies, refineries, upstream energy and power OEM companies

Segment outlook

The governments focus on energy security, energy transition and clean technology with digitalization is expected to add buoyancy to opportunities. Specific areas like green hydrogen and ethanol blending solutions are expected to provide opportunities. The focus on last mile connect, customer delivery and building up infrastructure be it for LPG or natural gas will continue the momentum. The government spends on infrastructure and housing is expected to continue to provide support to sectors like cement, steel and mining with a bit of slowdown during the election period.

Robotics and Discrete Automation

Summarized performance:

Particulars 2023 2022
Orders 389 320
Order backlog 187 211
Revenue 416 233
Results (Profit before interest & tax) 53 29

Segment performance

Along with productivity and quality factors, increasing customer demand for flexible automation solutions fueled continuous growth for Robotics business. Some other drivers would be energy efficiency and sustainability, the proliferation of AI, IoT and 5G, easy installation of robots and diverse value additions, and mass customization which requires adaptability and flexibility of operations. Automotive segment accounted for major share of the business; however, significant activities were observed in electronics, food & beverages, and service industries.

Major orders booked during the year:

• Automation of painting process by major Auto OEM

• Investment of automation solutions by an Electronics Customer

• Investment of automation solutions by an Electric Vehicle Component Manufacturer

• Indirect channel involving system integrators contributed to order growth

Segment Outlook

Automotive demand will continue to remain strong with the advent of electric vehicles providing an additional avenue for growth. Food and Beverage, Consumer goods and Electronics segments are showing strong signs of growth. Manufacturing activity in metals, logistics and warehouse, chemical and plastics segment are expected to remain stable. There is also significant interest from educational universities for robotics lab and training center. The governments programs like Digital India, Start-Up India, promoting local original design manufacturing are expected to be growth catalysts and help diversify dependence from the automotive sector.

Human Resources

In 2023, ABB kept its focus on building a strong talent pipeline to fuel its growth ambition. Post the pandemic era we have continued to drive the shift away from hierarchy, bureaucracy, and control driven systems to a more flexible, responsive, and connected ecosystem. Our people strategy was enabled through remote and hybrid working, strategic workforce planning, employee health and wellness, retention of skilled talent and on predicting and hiring for future skills for the organization.

We drove a culture driven by purpose, values, and customer centricity. Our efforts in enabling meaningful employee experience were reflected in enhanced employee engagement score across all key indices. These efforts were reflected in our hiring and capability development initiatives. We were also able to provide career growth opportunities to our top talent and our retention rate was amongst the best in the industry.

The Company focused on holistic employee well-being- Physical, mental, financial and social through multiple initiatives. Awareness programs like ‘Are you OK, psychological safety and access to Employee Assistance Program (EAP) helped employees with mental well-being. Towards Physical well-being, the Company enhanced medical cover, provisioned health checkup for employees and introduced a gamified platform to drive health awareness. Multiple sessions on education and prevention from various common ailments were conducted by experts. Experts sessions were organized for education on Financial well-being and financial literacy. Social well-being was catered to by extending CSR volunteering opportunity to employees. The Company also continued its focus on creating a more diverse and inclusive workplace.

Leaders not only drive results but are also the harbingers of behavioral change for their teams. In 2023, we continued to evolve and shape leadership norms and behaviors that cultivate a sense of camaraderie, collaboration, and a sense of shared growth amongst employees. Leaders focused on the coachable moments that helped translate the companys purpose into sustainable results that are reflected in the business outcomes for 2023.


There was an overall improvement in the liquidity scenario in the market due to stable & growing market. However, the Companys reputation in the market, customer feedback and long term goodwill with leading banks ensured advantageous competitive arrangements of various finance facilities. During all the months, the Company was able to manage positive cash position to fund its operations as well as meet the capex requirements.

Further, during the year, taking into cognizance the healthy cash situation, after board approval, the Company has invested in treasury bills for better yield. As of December 31, 2023, the Company had a net cash balance (including treasury bills) of INR 4727 crore in terms of foreign currency exposure – for imports and exports – the Company continued to conservatively hedge at the point of commitment or at balance sheet levels for protecting the contract margins.

Key Financial Ratios 2023 2022
i) Debtors Turnover 4.51 4.31
ii) Inventory Turnover 4.43 4.56
iii) Interest Coverage Ratio - -
iv) Current Ratio 1.90 1.82
v) Debt Equity Ratio - -
vi) Operating Profit Margin (%) 16.00 12.10
vii) Net Profit Margin (%) 11.89 11.86

Return on net worth is 22.94% in 2023 vs 22.83% in 2022 and operating profit margin is at 16.00% as compared to 12.10% in 2022. For both it is mainly on account of an increase in profitability due to increase in revenues as compared to previous year.

(i) Debtors Turnover

It is calculated by dividing turnover by average trade receivables.

(ii) Inventory Turnover

It is calculated by dividing turnover by average inventory

(iii) Interest Coverage Ratio

Not Applicable, as the Company did not have any borrowings in the current and previous year.

(iv) Current Ratio

It is calculated by dividing the current assets by current liabilities

(v) Debt Equity Ratio

Not Applicable, as the Company did not have any debt in the current and previous year

(vi) Operating Profit Margin (%)

It is calculated by dividing the PBIT by turnover.

(vii) Net Profit Margin (%)

It is calculated by dividing the profit for the year by turnover.

Internal control systems and Integrity

Internal Controls has been a key focus area of the company during the year. Internal Controls in the Company has been designed to further the interest of all its stakeholders by providing an environment, which is conducive to conduct its operations and at the same time putting in the appropriate checks & balances. In doing so, the Companys Internal Control environment has evolved over a decade to take care of, inter alia, financial, and operational risks. The organization has a holistic Internal Control framework comprising of elements like Country Management Committee, Corporate, Business & Local authorization tables, Local Management Instructions, Process and Entity Level Controls, Enterprise Risk Management, Local Direct Management Testing Programs, and a strong emphasis on integrity and ethics as a part of work culture. Aligning with the global reporting structure, the Company has implemented a related Assurance process for every business which establishes the ownership & accountability of the financial statements at every business level. An independent service provider, having expertise in the field, has performed current years Internal Financial Control effectiveness testing. Effective Statutory & Legal Compliance System is in place in the Company.

A well organized Group level tool (GRCM) is available to handle testing, internal audit issues, deficiency tracking, etc. Further, the in-house independent Internal Audit team acts as a pillar to support our control objectives. ABB India also has a well functioning Whistle Blower Policy in place to report any misdoing. Internal Control framework of ABB India is aligned with one of the most matured IC frameworks – COSO 1992 and then transitioned to COSO 2013. The current framework is also in line with the Internal Finance Control (IFC) requirement of the Companies Act, 2013.

Transformation Programs

The Company has been continuously investing in upgrading and implementing state-of-the-art technology in processes that can help improve serving customers and various stakeholders. In this journey during the year the Company implemented a program called Finance Transformation Program focused on rolling out Central Finance as a platform in SAP.

ABB India was a global pilot and the team successfully went live which proved to be a building block for other countries. This was possible with intense collaboration with global expert teams, project organization, external partners and the local business. This will gain maturity over the future years thereby improving productivity, internal control and transparency.

Alongside this, as a preparation for the future technology transformations in finance & HR processes, the company has embarked on HR & ERP transformation programs also. This is one of the key steps in the journey towards digitalization offerings to different stakeholders as well as to remove barriers to execution. The above transformation programs entail detailed working and knowledge gaining to the teams on ground which has enduring benefits spread over years.

Risk management

The Company has a robust Risk Management Charter and Policy, which provides an overall framework for Risk Management (RM) in the Company. The key elements of the Companys risk management framework have been captured in the risk management policy, which details the process for identifying, escalating, prioritizing, mitigating, and monitoring key risk events and action plans. The assessment of the risks covers areas of Strategy, Technology, Finance, Operations and Systems, Legal & Regulatory and Human Resources.

There are appropriate assurance and monitoring mechanisms in place to monitor the effectiveness of the risk management framework including the mitigation plans identified by the management for key risks identified through the risk management exercise. This risk management strategy is primarily run through the Global Divisions into the local divisions depending upon the criteria.

There is a consolidation of such data provided at local division level and supplemented with any macro risk that is evaluated at country level. In addition, the Company also has a Risk Management Committee which reviews the consolidated analysis of ERM (Enterprise Risk Management) exercise compiled by the Company and provides necessary guidance on its implementation and monitoring wherever needed.

The Companys existing framework provides for risk reviews at various levels based on Companys organizational structure matrix. Periodic assessment of risks, potential impact relating to business growth, profitability, talent engagement, and market position are conducted. Response to key operational risks, based on inputs received from the internal and external assessment, internal audit, performance review etc. are done on a regular basis.


As mandated by the framework, this section might contain some forward looking statements. Please note that all industry figures and estimates are taken from third party government and media reports available in the public domain. The Company does bear responsibility for the accuracy of the same.