ABB India to invest ₹708 crore for expansion into Tier-II and Tier-III cities

ABB India, a company operating in the high-precision engineering sector, has announced an investment of 75 million dollars (approximately ₹708 crore) for its organic expansion in India during 2026 and 2027. Under this new investment framework, the company will now focus specifically on Tier-II and Tier-III cities in addition to the major metro cities. This information was shared by T. K. Sridhar, Managing Director-designate of ABB India, during a joint interview. Sridhar will assume charge as Managing Director in January 2027.

Sanjiv Sharma, CEO and Managing Director, stated in an interview at the Bengaluru-based headquarters that, contrary to the common fear that automation would reduce jobs, ABB India has experienced a significant increase in its employee count in India due to automation. He added that through automation, the company can now employ workers with lower skill levels and train them rapidly.

Citing the example of the Nelamangala plant in Bengaluru, Sanjiv Sharma said that the plant where switchgear is produced is now fully automated and makes extensive use of robotics. Many young employees are currently working at this plant. He clarified that a few years ago, when automation was limited, the company required highly skilled personnel. However, now, due to automation and guiding screens available to every operator, the company can bring in very young people and train them quickly to perform complex tasks.

Sharma further explained that the need for skilled labour has actually decreased due to increased automation in factories. Previously, when a skilled worker left the company, it took time to find another skilled person, leading to delays in the recruitment process, but this delay has now been significantly reduced. He mentioned that most of these new recruits are young men and women. For example, the screwdrivers now used have sensors that can detect the exact torque. If the correct torque is not applied, the device does not proceed. Such interlocks ensure quality while allowing less-skilled youth to be operational.

The speed and precision achieved through automation have helped the company expand its operations and increase employment in India. According to a report by The Hindu, the number of ABB India employees was approximately 7,000 in 2021, which has increased to over 11,000 by 2026, representing a 57% increase. According to company data, the revenue, which was 730 million dollars in 2021, has nearly doubled to 1.4 billion dollars in 2025. 88% of the company's total business comes from within India, while 12% is achieved through exports.

Providing details of the total investment of 75 million dollars, T. K. Sridhar stated that 22 million dollars will be invested in the electrification plant in Nashik, 21 million dollars in the motion plant located in Peenya, Bengaluru, 14 million dollars in the electrification and automation plants in Nelamangala, 12 million dollars in the electrification Research and Development lab and office in Hyderabad, and 6 million dollars in the motion plant in Vadodara.

Sridhar added that the company's average annual capital expenditure over the last 5-6 years has been ₹300 crore. As demand remains strong, the construction and modernisation of factories are necessary, and therefore, this investment process will continue. He stated that focusing on organic expansion yields a better return on investment. Sridhar further added that when this journey began 8-10 years ago, the company's focus was only on customers in large metro cities, but it has now shifted its attention toward Tier-II and Tier-III cities.

ABB India is the Indian subsidiary of the ABB Group, a global technology company operating in the fields of electrification and automation.