ABB Ltd (ABB) has bagged a contract worth $900 million to construct a supercharged electricity highway more than 1,056 miles in India. The link will provide electricity generated from hydro-power stations in northeastern India to around 90 million people in the neighborhood of Agra, located south of New Delhi.
ABB’s ultrahigh-voltage direct current technology allows electricity to be transported over long distances without substantial transmission losses. This technology is going to be utilized in the setting up of the power link.
Although India’s per-capita electricity consumption is one of the lowest in the world, demand for electricity is growing rapidly and the growth rate is likely to sustain at an above-average level.
The emerging markets have significantly benefited the company and are expected to be a major driver of growth. With the increasing rate of industrialization in these regions, demand for energy efficient solutions like electrical grids and productivity enhancing means is on the rise.
In 2011, the company expects to benefit from the emerging markets as well as in other regions, enabling its customers to construct and improve power infrastructure and enhance industrial efficiency and productivity.
ABB Ltd.’s power and automation technologies offer a solution for sustainable development, thus helping to shield the world’s resources. The company has a number of technologies for the solar power industry and also a growing installed base. ABB Ltd has witnessed improving signs in late-cycle power, with some recent large contracts.
ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries. Its global organization is structured into five regions: Europe, Americas, Asia, the Middle East and Africa. Siemens AG (SI) is a major competitor of ABB Ltd.
We maintain a Zacks #2 Rank (short-term Buy recommendation) on ABB Ltd.
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