Tier-2, -3 cities bring in double-digit growth: Sanjeev Sharma, ABB India

economictimes.indiatimes.com:

automation major ABB India reported a robust second-quarter performance, with a 78.3% increase in net profit and 30.6% growth in revenue from a year earlier. While large orders have seen traction and demand from core sectors is expected to remain strong in the medium term, it is the tier-two and -three cities that are bringing in double-digit growth, country head and managing director Sanjeev Sharma tells Kalpana Pathak. Edited excerpts:

The quarter has been a good one. What are the reasons for this growth?
The quarter has been a solid one where we delivered on multiple fronts and the result of actions undertaken over several earlier quarters.

We have categorised products and solutions from 19 divisions to serve 23 market segments comprising emerging and traditional sectors. This provides for a diverse basket of opportunities converting to base and large orders. It also enables an optimal order and revenue mix.

Customer deliverables were customised as per the nature of the problem and delivery. The initiatives to transform shopfloors into smart ones in sustainable green campuses also help in seamless execution.

Which segments do you see most growth coming from in future?
ABB products and solutions serve 23 market segments. These comprise emerging or lighter segments as well as the core and traditional ones which also offer a fertile base for service orders and revenue.

We have a keen focus on products business which currently comprises about 70% of our offerings; the other two being projects and services. The share of the emerging or lighter segments to the orders basket has doubled in the last five years and has now grown to contribute more than 40% of the product orders. These segments would include data centres for