ABB Ltd. (ABB) will provide its power solution for the upcoming metro rail network for Jaipur, capital of Rajasthan, India. The contract was awarded by Delhi Metro Rail Corporation Limited (DMRC) and is valued at $15 million. The first-quarter bookings of ABB includes this contract.
The contract is a part of the Jaipur Mass Rapid Transport System (MRTS), an eco-friendly project being developed to facilitate transport for 11,000 people every hour on each rail corridor. The project will reduce the problems related to traffic on road and emissions from cars.
ABB Ltd. will be responsible for design, supply, installation and commissioning of essential power infrastructure for stage 1 of the East-West Corridor of the Jaipur Mass Rapid Transport System (MRTS) and will also provide 11 auxiliary substations.
Reliable and efficient power supply solutions from ABB helped in meeting the goals of the Jaipur project. ABB has a vast work experience in rail industry, with a range of technology, facilitating in the urbanization, economic development and pollution control in the emerging markets.
Moving ahead, the emerging markets will be a significant growth driver for the company, with a need for high efficiency power transmission technologies. Demand in mature markets is also expected to improve. Customer capital expenditures have increased with the rise in commodity prices. Increased capacity in some later-cycle infrastructure-related businesses continues to exist. In many sectors, price stability has been attained. ABB has increased its prices to offset increasing raw material costs.
ABB Ltd. is a Zurich (Switzerland) based power and automation technology company. The company operates in approximately 100 countries, structuring its global organization into five regions: Europe, Americas, Asia, the Middle East and Africa. A major competitor of ABB Ltd. is Siemens AG (SI).
Currently, we maintain a Zacks #3 Rank (short-term Hold recommendation) on ABB Ltd.
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