ABB India Upscales Bengaluru Factory - Increases Domestic Production by 25% for Energy-Efficient Drives

Bengaluru, 28th October 2025 – ABB India Limited (NSE: ABB; BSE: 500002) has commissioned a new variable speed drives (VSD) production line at its Peenya factory in Bengaluru. This investment will increase its domestic production capacity by 25%. This move drives emphasis on ABB’s commitment to India’s self-reliance efforts and is designed to improve energy efficiency in all industrial sectors.

Expansion to Strengthen Local Production

The new manufacturing line features cutting-edge automation and robotics – designed to Industry 4.0 standards – to provide higher productivity, safety, and quality. For ABB, the upgradation will cut lead times by as much as 40% while providing faster, made-to-order shipments appropriate for Indian industry needs.

The growth will be focused on major sectors like buildings, data centres, water management, cement, and metals – all of which are major users of energy-efficient motor drive systems. ABB wants to give industries a strong local manufacturing presence which are flexible and stable.

Commitment to Automation and Localisation

AR Madhusudan, Business Line Manager, Drive Products, ABB India, said that the expansion reiterates ABB’s long-term focus on India’s industrialisation. He added that the renovated factory will – “serve customers with greater reliability, speed, and agility, leveraging cutting-edge automation and localised production.”

The new range uses robotics for high-precision assembly, adds sensor-based quality inspection, and provides safer motion travel during the operation. These capabilities, plus real-time digital visibility, are anticipated to automate production streams and further enhance consistency and reliability in ABB’s drive systems.

Driving India’s Energy Efficiency Agenda

Tuomo Hoysniemi, Drive Products, ABB Motion President, emphasises that ABB’s Bengaluru expansion is aligned with India’s larger industrialisation and energy efficiency agenda. He pointed out that the company’s locally adapted manufacturing paradigm makes industries “leaner, cleaner, and more energy efficient,” something that coincidentally aligns with national programs such as Atmanirbhar Bharat and Make in India.

Commissioning of ABB’s expanded Peenya facility is also celebrating ABB milestone anniversaries, 50 years of variable speed drive innovation worldwide and 20 years of drives production in India. ABB’s drive solutions have contributed significantly to the provision of operational efficiency in infrastructure and industrial applications like metros, airports, metals, and pharma.

Stock Performance

Shares of ABB closed at ₹5,182.50 on October 28, 2025, down ₹55.50 (1.06%) for the day. During the session, it opened at ₹5,260.00, hit an intraday high of ₹5,275.00, and touched a low of ₹5,141.50. The company’s market capitalisation stood at ₹1.10 lakh crore, with a P/E ratio of 61.18 and a dividend yield of 0.83%.

ABB India Limited, which has its headquarters in Bengaluru, is a world leader in electrification and automation solutions. The company offers solutions in energy, infrastructure, and industrial manufacturing sectors to make digitalisation and sustainability a reality using high-efficiency motors, drives, and control systems.

REF: https://nsearchives.nseindia.com/corporate/ABB_28102025143357_PressRelease_October282025.pdf

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations