Reform measures in budget to boost capital goods sector: ABB India

The company is aiming for strong double digit growth in orders during 2015

ABB India is looking at a strong double-digit growth in its order bookings during 2015 as it expects the government to roll out reforms in the power distribution side and simplify the tax structure to boost the demand for capital goods.

"We are not satisfied with an 18 per cent growth we had achieved in order bookings last year. Though I cannot say how much growth we will achieve this year, I can only say that we are prepared for the boom and are looking forward to a reform process in the upcoming budget,” Bazmi Husain, Country Manager and Managing Director, ABB India Limited, said.

Currently, ABB is operating its factories in single shift and is geared to increase production as it expects the government to roll out reforms in the upcoming Budget so as to create demand in the capital goods sector, Husain said.

"We see a sense of optimism in the last nine months of the NDA government. The government's words need to be translated into action on the ground. We hope that begins to happen from now and the Finance Minister will announce some reforms in the upcoming budget," Husain told Business Standard, here today after announcing a milestone in the sale of solar inverters.

The company has achieved a year-on-year growth of 18 per cent in its order booking for 2014 at Rs 7,908 crore as against Rs 6,717 crore in the previous year.

He said the company has managed to improve its profitability last year mainly due to operational efficiencies. The domestic market is promising and positive sentiment will turn into orders as the investment cycle begins to unfold going forward.

Detailing his wish list for the Budget, Husain said: "The government should introduce reforms and implement them in terms of making it economically viable for businesses to operate. The regulatory framework needs to put in place in the power industry and the government should announce its participation in large infrastructure projects."

Despite a sluggish growth in the domestic market in 2014, the company managed to win larger orders and grew its export business. During the last year, exports accounted for 15 per cent of its turnover and it hopes to achieve similar growth in the current year, Husain said adding that it will continue with its strategy of “In country for country” to drive the exports business.

“Despite having the fifth largest generation capacity in the world, a third of our population has no access to electricity. We hope to be a key player in India’s solar powered future through our solutions spanning the entire solar value chain,” he added.