Ankity111/rag · Datasets at Hugging Face

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will you reach or surpass that particular 2007 level? Today, we are talking that we have already
surpassed that, so how are you going to maintain, right? So, that's a good conversion as what we
see.
ABB India Limited
August 11, 2023
Page 11 of 20
Sumit Kishore: Yes. Now, near that point, your ROE levels were significantly higher. And you're closing that
gap very fast now, but your ROEs were in excess of 30%. So, that was at the peak of the last
cycle, yes. Thank you.
Moderator: We have our next question from the line of Amit Mahawar from UBS. Please go ahead.
Amit Mahawar: Sir, congratulations on great profitability. I have 2 specific questions. First is on motion, the kind
of demand we are seeing in propulsion systems, do you think capacity-wise we are ready? And
do you think next 2 years, the run rate of motion, especially from propulsion, etc., that we can
have is going to be significantly higher? That's my first question.
Sanjeev Sharma: We could give this question to our Motion head, Sanjeev Arora. Sanjeev, did you get the
question?
Sanjeev Arora: So, if I got it right, it is upon the expansion and the investments relation, right?
Amit Mahawar: Yes.
Sanjeev Arora: Do we see good investments and how are we prepared for that? So, if that’s the question, thank
you very much, I think very well pointed out, and that is exactly how we are playing in this field.
We are expanding our portfolios, our production facilities. And you have seen in the past that
we have also put up a traction motors plant in Vadodara last year. And also, we are expanding
our converters production facilities as well. So, we are getting up, and we'll be coming as close
as the market demands.
Amit Mahawar: Fair point. And the second question is more on the electrification portfolio, and maybe Sanjeev,
you can help us here. We have a significant gap when we talk about the low voltage products
range. If you look at the MNC peers that we have in India and the kind of growth and run rate
they are also seeing now, can I assume that most of the capital allocation of ABB will go in the
EP segment because of CAPEX? And can you help us compare the gaps in EP portfolio that you
want to address?
Sanjeev Sharma: So, we have Kiran Dutt who heads our leading portfolio on the product side, the smart products
and smart building product portfolio. So, we will invite comments from him. And he's seeing
quite good growth. And we also have Ganesh Kothawade who looks into the electrical
distribution portfolio, which deals with the medium voltage. So, first, I invite Kiran with respect
to how you see growth in the EL side of your portfolio, and how relative to competition, that
work, I think, is just the question.
Kiran Dutt: Thank you, Amit. I think overall, if I look at it as a perspective, I could understand your question
in terms of what are we trying to do, are we able to catch up with the competition? I think, yes,
in terms of the portfolio, we have been trying to expand and not only the portfolio which are
going to be utilized in India, but also trying to have some portfolios and getting it from Europe
as well.
ABB India Limited
August 11, 2023
Page 12 of 20
So, overall, in terms of the portfolio gap, whatever is there or is going to be there, it's being
addressed looking at the market requirements which is going to also come up in the future as
well. So, not only in terms of what needs to be done now with the existing portfolio and also
what would be the requirements because the market segments are changing, and we need to
adapt ourselves to that particular segment. We are also trying to bring in more and more
portfolios in electrification, specifically on the low-voltage side.
On the medium voltage side, maybe Ganesh can take over.
Sanjeev Sharma: So, electrification is the largest business for us. And within electrification, we have the products
and the ELDS, which is the distribution system. So, actually, the real competition is between
these 2 guys, wherein right now the ELDS is the largest business. So, now if the question is
either that Kiran will be able to surpass that or not. So, I think that's where they are focused on
in terms of how to engage in the market. Inviting comments from Ganesh. How do you see
ELDS portfolio as well as your position in the market?
Ganesh Kothawade: Thanks, Sanjeev. When it comes to the Distribution Solutions business, we all know that we are
really leading in this business, and we have quite a matured portfolio because we are here in
India since last 40 years, and we have almost all the products which are manufactured locally.
And as Kiran has rightly said, because there are some segments which are now changing. We
are coming out with the solutions which are segment-specific because evolving segments like
the data centers or food and beverage, these are some of the segments that require a very specific
solution, and we are coming out of those type of solutions.
And also, there is some shift in technology where the market is demanding for greener products.
And we already launched an ecofriendly GIS (gas insulated switchgear) last year and the next
expansion of those range also will come to the market. So, I don't see a major gap in terms of
distribution solutions, what is required by the market and in our customers in India.
Sanjeev Sharma: Thank you, Ganesh. And a very quick comment. The rate of growth of the portfolio, which Kiran
is running between ELSP and SB, we are seeing a very healthy growth rate there. And also, I
think the plans going forward are very, very encouraging, and the momentum is encouraging.
And also, our factories, which are delivering this product portfolio, I think the productivity gains
that we are getting there with increased automation and also new techniques that we have
developed, I think that is also adding to our bottom line in a very significant way. Very, very
strong businesses, ELDS and ELSP and ELSB. So, we are very encouraged. And all the
allocations that are demanded by these businesses are being given to them.
Moderator: We'll take our next question from the line of Ankur from HDFC Life. Please go ahead.
Ankur Sharma: Great numbers once again. So, I have 3 questions. One, going back to the base order growth,
which was just about 4% this quarter, and I take your point that we are sitting off a large base
ABB India Limited
August 11, 2023
Page 13 of 20
last year. But just trying to understand, especially on the motor side, which is typically short
cycle, small orders, 8% growth. Even on the PA side, including this metal order, that's a 10%
growth. So, is there some lack of momentum which you are seeing? Any slowdown we are
seeing in terms of order? Or is it that we should kind of reset our expectations to a high single
digit kind of order growth, given the base we are on?
Sanjeev Sharma: So, Sanjeev Arora is very well connected with the market on the motor side of the business.
Sanjeev, how would you answer that query?
Sanjeev Arora: I think a very good observation. So, see, let's understand. We have also seen the softening in
metal prices. So, that piece is also catching up when you talk of the absolute numbers. So, that
is one thing which you have to consider. And the second part is, I would say that the short-cycle
business, I cannot say that it is 100% right, but then we can see some kind of headwinds. At this
point of time, when we talk to our customers, be it the large international OEMs, end users, they
all have a heavy investment plan. But yes, it could be possible that we see some headwinds. But
as of now, they are not very visible, as I can say very confidently.
Ankur Sharma: So, that's my question. So, basically, while growth may continue, we probably see a high single,
low double-digit kind of growth. That's the kind of growth because our overall orders are
growing at high 20s, right? So, maybe now we need to reset our expectations to more like a high
single, low double-digit kind of growth. Is that a fair assumption?

will you reach or surpass that particular 2007 level? Today, we are talking that we have already

surpassed that, so how are you going to maintain, right? So, that's a good conversion as what we

see.

ABB India Limited

August 11, 2023

Page 11 of 20

Sumit Kishore: Yes. Now, near that point, your ROE levels were significantly higher. And you're closing that

gap very fast now, but your ROEs were in excess of 30%. So, that was at the peak of the last

cycle, yes. Thank you.

Moderator: We have our next question from the line of Amit Mahawar from UBS. Please go ahead.

Amit Mahawar: Sir, congratulations on great profitability. I have 2 specific questions. First is on motion, the kind

of demand we are seeing in propulsion systems, do you think capacity-wise we are ready? And

do you think next 2 years, the run rate of motion, especially from propulsion, etc., that we can

have is going to be significantly higher? That's my first question.

Sanjeev Sharma: We could give this question to our Motion head, Sanjeev Arora. Sanjeev, did you get the

question?

Sanjeev Arora: So, if I got it right, it is upon the expansion and the investments relation, right?

Amit Mahawar: Yes.

Sanjeev Arora: Do we see good investments and how are we prepared for that? So, if that’s the question, thank

you very much, I think very well pointed out, and that is exactly how we are playing in this field.

We are expanding our portfolios, our production facilities. And you have seen in the past that

we have also put up a traction motors plant in Vadodara last year. And also, we are expanding

our converters production facilities as well. So, we are getting up, and we'll be coming as close

as the market demands.

Amit Mahawar: Fair point. And the second question is more on the electrification portfolio, and maybe Sanjeev,

you can help us here. We have a significant gap when we talk about the low voltage products

range. If you look at the MNC peers that we have in India and the kind of growth and run rate

they are also seeing now, can I assume that most of the capital allocation of ABB will go in the

EP segment because of CAPEX? And can you help us compare the gaps in EP portfolio that you

want to address?

Sanjeev Sharma: So, we have Kiran Dutt who heads our leading portfolio on the product side, the smart products

and smart building product portfolio. So, we will invite comments from him. And he's seeing

quite good growth. And we also have Ganesh Kothawade who looks into the electrical

distribution portfolio, which deals with the medium voltage. So, first, I invite Kiran with respect

to how you see growth in the EL side of your portfolio, and how relative to competition, that

work, I think, is just the question.

Kiran Dutt: Thank you, Amit. I think overall, if I look at it as a perspective, I could understand your question

in terms of what are we trying to do, are we able to catch up with the competition? I think, yes,

in terms of the portfolio, we have been trying to expand and not only the portfolio which are

going to be utilized in India, but also trying to have some portfolios and getting it from Europe

as well.

ABB India Limited

August 11, 2023

Page 12 of 20

So, overall, in terms of the portfolio gap, whatever is there or is going to be there, it's being

addressed looking at the market requirements which is going to also come up in the future as

well. So, not only in terms of what needs to be done now with the existing portfolio and also

what would be the requirements because the market segments are changing, and we need to

adapt ourselves to that particular segment. We are also trying to bring in more and more

portfolios in electrification, specifically on the low-voltage side.

On the medium voltage side, maybe Ganesh can take over.

Sanjeev Sharma: So, electrification is the largest business for us. And within electrification, we have the products

and the ELDS, which is the distribution system. So, actually, the real competition is between

these 2 guys, wherein right now the ELDS is the largest business. So, now if the question is

either that Kiran will be able to surpass that or not. So, I think that's where they are focused on

in terms of how to engage in the market. Inviting comments from Ganesh. How do you see

ELDS portfolio as well as your position in the market?

Ganesh Kothawade: Thanks, Sanjeev. When it comes to the Distribution Solutions business, we all know that we are

really leading in this business, and we have quite a matured portfolio because we are here in

India since last 40 years, and we have almost all the products which are manufactured locally.

And as Kiran has rightly said, because there are some segments which are now changing. We

are coming out with the solutions which are segment-specific because evolving segments like

the data centers or food and beverage, these are some of the segments that require a very specific

solution, and we are coming out of those type of solutions.

And also, there is some shift in technology where the market is demanding for greener products.

And we already launched an ecofriendly GIS (gas insulated switchgear) last year and the next

expansion of those range also will come to the market. So, I don't see a major gap in terms of

distribution solutions, what is required by the market and in our customers in India.

Sanjeev Sharma: Thank you, Ganesh. And a very quick comment. The rate of growth of the portfolio, which Kiran

is running between ELSP and SB, we are seeing a very healthy growth rate there. And also, I

think the plans going forward are very, very encouraging, and the momentum is encouraging.

And also, our factories, which are delivering this product portfolio, I think the productivity gains

that we are getting there with increased automation and also new techniques that we have

developed, I think that is also adding to our bottom line in a very significant way. Very, very

strong businesses, ELDS and ELSP and ELSB. So, we are very encouraged. And all the

allocations that are demanded by these businesses are being given to them.

Moderator: We'll take our next question from the line of Ankur from HDFC Life. Please go ahead.

Ankur Sharma: Great numbers once again. So, I have 3 questions. One, going back to the base order growth,

which was just about 4% this quarter, and I take your point that we are sitting off a large base

ABB India Limited

August 11, 2023

Page 13 of 20

last year. But just trying to understand, especially on the motor side, which is typically short

cycle, small orders, 8% growth. Even on the PA side, including this metal order, that's a 10%

growth. So, is there some lack of momentum which you are seeing? Any slowdown we are

seeing in terms of order? Or is it that we should kind of reset our expectations to a high single

digit kind of order growth, given the base we are on?

Sanjeev Sharma: So, Sanjeev Arora is very well connected with the market on the motor side of the business.

Sanjeev, how would you answer that query?

Sanjeev Arora: I think a very good observation. So, see, let's understand. We have also seen the softening in

metal prices. So, that piece is also catching up when you talk of the absolute numbers. So, that

is one thing which you have to consider. And the second part is, I would say that the short-cycle

business, I cannot say that it is 100% right, but then we can see some kind of headwinds. At this

point of time, when we talk to our customers, be it the large international OEMs, end users, they

all have a heavy investment plan. But yes, it could be possible that we see some headwinds. But

as of now, they are not very visible, as I can say very confidently.

Ankur Sharma: So, that's my question. So, basically, while growth may continue, we probably see a high single,

low double-digit kind of growth. That's the kind of growth because our overall orders are

growing at high 20s, right? So, maybe now we need to reset our expectations to more like a high

single, low double-digit kind of growth. Is that a fair assumption?