ABB India gains after partnering with IIT Madras for technical cooperation

ABB India rose 1% to Rs 1,294.60 at 12:30 IST on BSE after the company announced that ABB signed a memorandum of understanding with the Indian Institute of Technology Madras.

The announcement was made during market hours today, 6 April 2016.

Meanwhile, the BSE Sensex was up 39.98 points, or 0.16%, to 24,923.57.

On BSE, so far 1,844 shares were traded in the counter, compared with an average volume of 18,527 shares in the past one quarter. The stock hit a high of Rs 1,299.90 and a low of Rs 1,283.40 so far during the day. The stock hit a 52-week high of Rs 1,444.40 on 17 July 2015. The stock hit a 52-week low of Rs 963.05 on 21 January 2016. The stock had outperformed the market over the past one month till 5 April 2016, gaining 12.58% compared with 0.96% gains in the Sensex. The scrip had also outperformed the market in past one quarter, rising 17.2% as against Sensex's 2.72% fall.

The large-cap company has an equity capital of Rs 42.38 crore. Face value per share is Rs 2.

ABB India said that the partnership is for a technical cooperation to build microgrids as well as joint research & development (R&D) in the field of rural electrification, utilization of natural non-fossil resources, battery energy storage and their connection to loads and main grid. The agreement also includes internship opportunities to post graduate students of The Indian Institute of Technology Madras (IITM) for the next three years.

IITM and ABB will jointly work to design, build and supply equipment for up to two such microgrids in rural areas.Along with ABB equipment, the microgrid will enable homes to be fitted with energy efficient DC devices like LED bulbs, TV, Cell phone charges, Brushless DC motor based fans, specially designed by IITM.The project shall be managed by IITM till the transfer of the installations to the local distribution utility (DISCOM).

IITM has been doing pioneering work over the last few years developing and demonstrating solar based energy efficient DC homes. ABB, a global power and automation major has a strong portfolio of products for the renewable energy integration, distribution and automation of interconnected renewable energy sources that form local microgrids.

ABB will also support research at IITM's Battery Engineering Center to improve the life and discharge cycles of Lead-Acid to Lithium-Ion batteries for the next five years. Immediate applications range from telecomtower backups to grid ancillaryservices and renewable integration.In addition, the research has the scope of including storage solutions for electric vehicles (EVs), important in light of the recent push for EVs to act as virtual power plants to store surplus energy and support the grid in times of deficit. The government outlined this in the recently launched National Mission on Electric Mobility program which targets six million electric vehicles (40 lakh two-wheelers and 20 lakh four-wheelers) by 2020.

ABB India's net profit rose 53.8% to Rs 129.40 crore on 8.1% rise in net sales to Rs 2384 crore in Q4 December 2015 over Q4 December 2014.

ABB's business is into power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact.

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