An Internship Report On ABB INDIA (Repaired)

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An Internship Report on

“ ABB INDIA LTD “

By

SHRAVYA MANJUNATH
1JB20BA085
Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI


In partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF


Internal Guide
PROF. MADHUMATHY
ASSISTANT PROFESSOR

DEPT. OF MBA

DEPARTMENT OF MBA
S J B INSTITUTE OF TECHNOLOGY
B G S HEALTH AND EDUCATION CITY
Kengeri, Bangalore-560060.
Batch 2020-22
II Jai Sri Gurudev II
Sri Adichunchanagiri Shikshana Trust ®
S J B INSTITUTE OF TECHNOLOGY
BGS Health & Education City, Kengeri, Bangalore-560060.

DEPARTMENT OF MANAGEMENT STUDIES (MBA)

CERTIFICATE

This is to certify that SHRAVYA MANJUNATH bearing USN 1JB20BA085 is a


bonafide student of Master of Business Administration course of the SJB Institute
of Technology, Batch- 2020-22, affiliated to Visvesvaraya Technological
University, Belagavi. An Internship on “ABB INDIA LTD” is prepared by him/ her
under the guidance of PROF. MADHUMATHY --------, in partial fulfillment of
the requirements for the award of the degree of Master of Business Administration
of Visvesvaraya Technological University, Belagavi, Karnataka.

Signature of Guide Signature of HOD Signature of Principal


NAME DR. MAMATHA J DR. AJAI CHANDRAN C K
DESIGNATION PROFESSOR & HEAD PRINCIPAL
DEPT. OF MBA DEPT. OF MBA SJBIT, BANGALORE

Viva – voce Examination Date:


Signature of Internal Examiner Signature of External Examiner
Name and affiliation Name and affiliation

CERTIFICATE

This is to certify that SHRAVYA MANJUNATH, bearing USN:1JB20BA085, has


done his/her “Internship at ……….” , Bangalore from --------- to ------------.

This internship Programme aimed at familiarizing the organization to the student.


During his/her internship, he/she has demonstrated his/her skills with motivation to
learn new skills.

During the period of Internship Proramme he/she was found punctual, hardworking
and inquisitive, which is worth appreciating.

Signature of Guide Signature of HOD

NAME DR. MAMATHA J


DESIGNATION PROFESSOR & HOD
DEPT. OF MBA DEPT. OF MBA
ACKNOWLEDGEMENT
The satisfaction & euphoria that accompany the successful completion of any task would
be incomplete without the mention of people who made it possible because “Success is
the abstract of hard work & perseverance, but steadfast of all is encouragement
guidance”. So I acknowledge all those whose guidance and encouragement served as a
beacon light & crowned our efforts with success.
I am grateful to his divine soul Sri Sri Sri Jagadguru Dr. Balagangadharanatha Maha
Swamiji and I am grateful to His Holiness Jagadguru Sri Sri Sri Dr. Nirmalanandanatha
Maha Swamiji for providing me an opportunity to complete my academics in this esteemed
college.
I would like to express my profound gratefulness to his holiness Revered Sri Sri Dr.
Prakashnath Swamiji, Managing Director, SJBIT for providing an opportunity to complete my
academics and present this project.
I am grateful to Dr. Ajai Chandran C K, Principal for his kind co-operation and
encouragement.
I am extremely grateful to Dr. Mamatha J , Head of the Department of
Management Studies (MBA), for her co-operation and encouragement.
I express my gratitude and sincere thanks to PROF MADHUMATHY , ASSISTANT
PROFESSOR for the valuable guidance throughout my Internship.
I am highly indebted to Dr. Roopa Temkar V, Internship Coordinator, who has been
source of inspiration to me and has extended her fullest support throughout the intership
duration. I also thank all the staff members of MBA Department for their help during
the course of my project. Last but not the least I thank my parents, family members &
friends, for their continuous and great support and encouragement throughout my
Internship.
Regards,
SHRAVYA

Declaration

I, SHRAVYA MANJUNATH hereby declare that this internship conducted at “---” is record of
independent work carried out by me under the guidance of—PROF MADHUMATHY -------,
ASSISTANT PROFESSOR, of MBA Department, SJB Institute of Technology and external
guidance by Dr. Roopa Temkar V, Associate Professor, Dept. of MBA.

I also declare that this internship is towards the partial fulfillment of the university regulations
for the award of degree of Master of Business Administration by Visvesvaraya Technological
University, Belgavi. I have undergone an internship for a period of Four Weeks, I further
declare that this internship is based on the original study undertaken by me and has not been
submitted for the award of any degree/diploma from any other University/Institution.

Place: Bangalore Signature of the student

Date:

Disclaimer
The enclosed documents is the outcome of a student’s academic assignment and does not
represent the opinions/ views of the University or the institution or the department or any
other individuals referenced or acknowledged within the document. The data and information
studied and presented in this report has been accessed in good faith from secondary sources/
web sources/ public domain, including the organisation’s website, solely & exclusively for
academic purposes, without any consent/ permission, express or implied, from the
organization concerned. The author makes no representation of any kind regarding the
accuracy, adequacy, validity, reliability, availability or completeness of any data/ information
herein contained.

Place: Bangalore Signature of the Student

Date:
An internship report on ABB INDIA

Executive Summary:

The study gives an introduction of the organization and the industry. Introduction about the
industry provides us an insight about the industry to which the organization belongs and gives an
overview of the industry. This is followed by the introduction of the organization.

It provides an overview of the organization profile. Here we learn about the background of the
organization and the nature of the business . We also learn about the vision, mission and quality
policy of the organization. This study further provides an insight into the workflow mode, the
products/services profile, achievements and future growth and prospects of the organization.

In the study we learn about the McKensey’s 7S framework and Porter’s Five forces of the
organization.

It also provides an insight into the SWOT analysis of the organization.

In the study, we calculate five financial ratios which help us to gain an in depth knowledge about
the overall position of the organization.
An internship report on ABB INDIA
An internship report on ABB INDIA

CHAPTER 1: INTRODUCTION OF THE INDUSTRY AND THE ORGANISATION

Introduction about the industry

ABB Group is a type of public company. It belongs to the electrical equipment


industry. ABB group was founded in 1988 through the merger of ASEA(1883) of
Sweden and Brown, Boveri and Cie (1891) of Switzerland. It is head quartered in
Zurich Switzerland.

Electrical equipment industry of India:

Any machine that is powered by electricity is said to be an electricity equipment.


Such materials consist of an enclosure, power switch and electrical equipment that
trigger a machine. Examples of electrical equipment are lighting, major
appliances ,small appliances, IT equipment.

Indian electricity equipment industry consists of the following sectors:

 Generation equipment consisting of boilers, turbines and generators.


 Transmission and distribution (T&D) equipment includes energy meters,
transformers, cables, transmission lines, etc.

The generation equipment sector accounts for 15% of the total market while T&D
equipment sector accounts for 85% of the total market. In the last couple of years,
the Government of India has been taking the transformative change in the power sector for
achieving its ambitious target of providing affordable 24x7 power for all its citizens.
It has taken several initiatives such as increasing contribution of renewables in the energy
basket , increasing private participation in the transmission segment, developing the National
Power Grid to boost growth in the T&D industries.
The sources of power generation are as below:
 Thermal power – includes coal, lignite, gas and diesel.
An internship report on ABB INDIA

 Renewable power- includes wind energy, solar power, small hydro power(SHP),bio
power(BP), waste to power.
 Hydro power
 Nuclear power
With development of new technologies , the smart grid and smart meters across the world are
undergoing a massive transformation, bringing into fore the potential to bring new opportunities
for electrical sector’s players in India and for new entrants as well.

 Smart Grid in India


“Transform the Indian power sector into a secure, adaptive, sustainable and digitally enabled
ecosystem that provides reliable and quality energy for all with active participation of
stakeholders” is the Vision of India on Smart Grids. Smart grid facilitates efficient and reliable
end-to-end intelligent two-way delivery system from source to sink through integration of
renewable energy sources , distribution and smart transmission.. It shall bring efficiency and
sustainability in meeting the growing electricity demand with reliability and best of the quality.
Smart Grid will act as a backbone infrastructure to enable new business models like electric
vehicles, smart cities, and also resilient and efficient energy system and tariff structures.

 Smart Meters in India:


A smart meter is an electronic device that records consumption of electricity, gas or water and
communicates that information for monitoring and billing. Smart meters send meter readings to
the utility company automatically. They also come with in-home displays , which give users real
time feedback on their energy or water usage and what is costing. With electricity demand
expected to rise by 79% in the next 10 years, India is on a path of transforming its energy mix
with innovation. Along with enhancing energy production, the nation also needs to cut
Aggregate Technical and Commercial (AT&C) losses to below 12% by 2022 and below 10%
by 2027.

Enabling India to achieve this imperative is the smart grid, the first step of which , is the creation
of Advanced Metering Infrastructure. Advanced Metering Infrastructure (AMI) refers to the
systems that measure, collect and analyze energy usage and communicate with metering devices
An internship report on ABB INDIA

such as electricity meters, gas meters and water meters etc. either on request or on a schedule.
These systems include hardware, software, communications, consumer energy displays and
controllers, customer associated systems, meter data management software, and supplier
business systems.

Top electrical companies in India

 ABB India Ltd. ABB India was founded in the year 1988. ...
 Bharat Electronics Ltd. The company was founded in the year 1954. ...
 Bharat Heavy Electricals Ltd. BHEL was founded in year 1964 by government of
India. ...
 Crompton Greaves Consumer Electricals Ltd. ...
 Emco Ltd. ...
 Havells India Ltd. ...
 Exide Industries Ltd. ...
 Kirloskar Electric Co Ltd.

Industry Overview: Electrical Equipment

The Electrical Equipment Industry consists of companies that make a range of products for a
diverse customer base. . Products include electrical motors, commercial and industrial lighting
fixtures, heating, ventilation and air conditioning systems and components, and, among others,
electrical power equipment. Operating structures involve high fixed costs. Copper, aluminum
and steel are essential raw materials used in the manufacture of products. (Fluctuations in
commodities prices can have an impact on the group's earnings performance.) The industry spans
all corners of the world, and it is subject to the influence of the macroeconomic cycles.
An internship report on ABB INDIA

Introduction about the organization

ABB India Ltd was formerly known as ABB India. It is one of the world's leading engineering
companies which helps customers to use electrical power effectively and to increase industrial
productivity in a sustainable way. ABB India is a leader in power and automation technologies
that enable utility and industry customers to improve performance while lowering environmental
An internship report on ABB INDIA

impact. They have served utility and industry customers for over 50 years with the complete
range of engineering products solutions and services in areas in Automation and Power
technology. They are having their operations in 14 manufacturing facilities in India and serving
their customers through an extensive countrywide presence with more than 18 marketing offices
8 service centers 3 logistics warehouses and a network of over 800 channel partners.

The company segments includes power systems which offers turnkey systems and services for
transmission and distributions for power grid and power plants instrumentation control and
balance of power plants; and also produces transformers high and medium voltage switchgears
circuit breakers capacitors distribution relays; process automation which provides integrated
solutions and served oil and gas power chemicals and pharmaceuticals pulps and paper metals
and minerals marine and turbo charging industries; automation products which provides motors
variable speed drives low voltage products instrumentation and power electronics and others
consists of robotic systems.

The ABB Group has also established a corporate research base in India which focuses on
software development and industrial IT development and deployment. It also helps maintain and
support a range of software intensive products and acts as a partner for ABB R&D centers as
well as business areas within the group.

The Power Technologies division serves electric, gas and water utilities as well as industrial and
commercial customers, with a broad range of products, services and solutions for power
transmission and distribution. The company’s power offerings range from large High Voltage
Direct Current (HVDC) and Flexible AC Transmission Systems (FACTS) projects, turnkey
substations and switchyard installations to supplying a wide range of products like circuit
breakers, transformers, capacitors, relays, medium voltage equipment etc. As part of ABB’s
global optimization philosophy, ABB India’s state-of-the-art manufacturing facilities in
Vadodara and Nashik have been designated as global sourcing bases for 72.5 kV outdoor circuit
breakers and 11/33 kV outdoor vacuum/SF6 circuit breakers as well as magnetic actuators and
indoor HPA SF6 breakers. The company is further strengthening its market position in the fast-
growing power distribution sector with significant orders for traditional equipment as well as
expanded offerings such as new products like Ring Main Units (RMUs) and Compact Sub-
Stations (CSSs) and SCADA (Supervisory Control and Data Acquisition) to name a few. The
An internship report on ABB INDIA

Automation Technologies division serves customers across the industry spectrum of process
manufacturing and consumer industries ranging from automotive, chemicals, consumer
electronics, life sciences, manufacturing, marine, metals, minerals, paper, petroleum, turbo
charging and utilities. ABB’s competitive edge is its unparalleled domain expertise and cutting
edge technologies. These include a comprehensive portfolio comprising complete automation,
electrics, control, instrumentation, process analysis, drives, motors, power electronics, robots,
software, low-voltage products, field maintenance and asset management services to name a few.
ABB offers complete solutions, fully integrating industrial processes that are backed by world-
class platforms. The offerings include complete electrical, process control & automation and a
broad range of software applications. ABB is committed to harnessing the power of information
technology, Internet and eCommerce to deliver faster and more effective solutions to its
customers. As part of its strategic thrust, the company has been strengthening its standard
product business through market penetration and range expansion. Capacity expansions are
underway and several new products have been added to the portfolio, including many new low
voltage products and a complete range of household distribution electricals.
An internship report on ABB INDIA
An internship report on ABB INDIA

Chapter 2 : ORGANISATION PROFILE

i. BACKGROUND:

ABB Ltd was incorporated on December 24 1949 as Hindustan Electric Company Ltd. In
September 24 1965 the name of the company was changed to Hindustan Brown Boveri Ltd. In
the year 1989 Asea Ltd was amalgamated with the company with effect from January 1 1989 and
the company changed their name to Asea Brown Boveri Ltd with effect from October 13 1989.
In the year 1995 Flakt India Ltd was amalgamated with the company with effect from October 5
1995. During the year 1994-95 ABB Zurich and Daimler-Benz AG Germany established a joint
venture company namely 'ABB Daimler-Benz Transportation AG' (Adtranz) in Germany. Also a
subsidiary of Adtranz was incorporated in India namely 'ABB Daimler-Benz Transportation Ltd'
which took over the Transportation Business of the company with effect from January 1 1996. In
the year 1999 the power generation business was de-merged and transferred to ABB Alstom
Power India Ltd with effect from April 1 1999. The name of the company was changed to ABB
Ltd with effect from April 16 2003.In the year 2004 the company introduced new range of
wiring accessories including switches regulators and sockets in the Indian market. They made
major expansions in their installed capacity of Motors and Other Machines Switchgear of all
types Turbochargers Transformers Electronic Control and Supply Units for Variable Speed
Drives and Other applications Power Capacitors of all types. In July 12 2004 the company
divested their Control Valves Business to Kent Introl Pvt Ltd. They added several new products
under Power Technologies and Automation Technologies divisions. In the year 2005 the
company won the first major equipment order for 765 KV extra-high voltage (EHV)
transformers and shunt reactors from the National Thermal Power Corporation (NTPC) and
Power Grid Corporation of India Ltd. They established a technology center in Nasik for medium
voltage power technologies cater to the fast developing power distribution sector. In the year
2006 they entered into an MoU with IIT Delhi in 2007 the company received an order worth Rs
186 crore for integrated power distribution management system. In September 2007 the company
won an order Rs 933 million from KHD Humboldt Wedag GmbH Germany for providing a
turnkey electrics and automation solution for a 5000 TPD capacity green-field cement plant at
Katrana in Jordan. Also the company was awarded a turnkey contract worth Rs 186 crores by
An internship report on ABB INDIA

Karnataka Power Transmission Corporation Ltd for implementing an integrated Network


Manager SCADA/ EMS/DMS (Supervisory Control and Data Acquisition Energy Management
System Distribution Management System) solution. In October 2007 the company received
orders worth Rs 512 crore from JSW and their associated companies for providing turnkey
power and automation solutions for their steel and power plant projects. In February 2008 the
company was awarded orders worth Rs 330 crore for providing turnkey substation solutions and
a range of power products to Power grid Corporation of India Ltd (PGCIL) as part of their efforts
to strengthen the transmission grid across the country. In June 2008 the company won orders
worth Rs 295 crore for providing power solution for JSW Energy for their upcoming thermal
power plant in Ratnagiri. In July 2008 the company won an order of Rs 312 crore for design
supply installation testing and commissioning of electrical products and systems for a new
terminal T3 at Indira Gandhi International Airport in Delhi India. Also they won orders worth Rs
455 crore from Vedanta Aluminium Ltd for providing automation and power products systems
and solutions for expansion of their aluminium smelter plant at Jharsuguda in Orissa. In
December 2009 the company won an order worth Rs 506 crore from Bangalore Metro Rail
Corporation Ltd for providing power solutions for a planned metro network in Bangalore. In
March 2010 the company won orders worth $22 from Haryana Vidyut Prasaran Nigam Limited
(HVPNL) a state-owned power utility in northern India for providing four turnkey substations
for the regional grid. In October 2010 the company acquired the business of Metsys Engineering
and Consultancy Pvt Ltd (Metsys) based in Bangalore a private limited company engaged in
providing engineering services/consultancy and optimized solutions to OEMs/End customers
mainly in Metal industry for a total consideration of Rs 84.6 million. In May 2011 the company
entered into an agreement with ABB Global Industries and services Ltd to purchase and acquire
the assets and liabilities of three businesses namely Transformer Insulation - Boards and
Components Low Voltage Breakers and Switches and Vacuum Interrupters for an aggregate
consideration of Rs 40000 lakh on a slump sale basis with effect from April 01 2011. In August
2011 the company won orders worth INR161 million to supply turnkey power and automation
solution for three photovoltaic solar power plants with a combined capacity of 11 megawatts
(MW) in India. Also they won an order worth around USD 1 billion from the Dutch-German
network operator TenneT on a power link for transmitting high voltage direct current (HVDC)
which will connect the offshore wind in the North Sea to the grid on the German mainland. In
An internship report on ABB INDIA

December 2011 the company won an order worth about Rs 175 crore from Powergrid
Corporation of India Ltd to supply equipment for the Champa transmission substation in the
central Indian state of Chhattisgarh. The company acquired 100% equity shares of Baldor
Electric India Pvt Ltd Pune from Baldor Holdings Inc USA and Baldor Electric Switzerland AG
Switzerland for a total consideration of Rs 3390 lakh. Baldor became a wholly owned subsidiary
of the company with effect from December 1 2011.In 2012 the company wins Rs.75 crore order
in India to power metro for pink city Jaipur(Rajasthan). The company also wins Rs 175 crore
order to strengthen Western India's Power Grid. In 2013 the company inaugurates two new
manufacturing plants for power products in India. During the year the company's name was
changed name from ABB Ltd. to ABB India Ltd. During 2014 the company set up a substation
in Southern India to help meet growing power demand. The company also commissions world
record voltage circuit breaker during the year under review. The company wins Rs. 334 Crore
orders to boost power capacity and strengthen during the year. The company also wins power
products orders worth Rs. 310 crore in India during the year under review. In 2015 the company
won an order worth Rs 256 crore from Ceylon Electricity Board (CEB) Sri Lanka. During the
year the company also won an order of Rs 90 crore from Techno Electric and Engineering
Company (Techno). During the year the company launches freehome - Making home automation
easier than ever. The company also wins Rs.125 crore order to upgrade three substations in
agricultural belt. The company during the year also secured orders worth Rs 119 crore to provide
plant electrification automation and substation solutions for solar power plants. During the year
under review the company also introduced the first 800 kilovolt (kV) converter transformer
which is manufactured at their Vadodara facility in Gujarat. On 5 April 2016 ABB India
announced that it has signed a memorandum of understanding with the Indian Institute of
Technology Madras (IITM) to enter a technical cooperation to build microgrids as well as joint
R&D in the field of rural electrification utilization of natural non-fossil resources battery energy
storage and their connection to loads and main grid. IITM and ABB will jointly work to design
build and supply equipment for up to two such microgrids in rural areas. Along with ABB
equipment the microgrid will enable homes to be fitted with energy efficient DC devices like
LED bulbs TV Cell phone charges Brushless DC motor based fans specially designed by IITM.
The project shall be managed by IITM till the transfer of the installations to the local distribution
utility (DISCOM).On 1 September 2016 ABB India inaugurated a new solar inverter
An internship report on ABB INDIA

manufacturing facility in Bengaluru. The facility is set to double the solar inverter manufacturing
capacity of the company. On 14 September 2016 ABB India announced that it has commissioned
a state-of-the-art solution for shore-to-ship power supply for ships at the V.O.Chidambaranar
Port formerly the Tuticorin Port. This solution expands the scope of the green agenda beyond
renewable power to technology which will enable ships docking at a port to plug for power
instead of running on polluting diesel generators and using expensive power. On 7 October 2016
ABB India announced that it has developed manufactured and energized a 1200-kilovolt (kV)
ultrahigh voltage power transformer to support India's plans to build a 1200 kV transmission
system supplementing the existing 400 kV and 800 kV transmission grid as demand for
electricity increases. This 1.2 million volt transformer represents the highest alternating current
voltage level in the world and is installed at the national test station at Bina Madhya Pradesh in
Central India as part of a collaborative initiative by the country's central transmission utility
Power Grid Corporation of India Limited (POWERGRID). The transformer was manufactured
and tested at ABB's facility in Vadodara. On 5 December 2016 ABB India announced that it has
signed an MoU with NITTTR to establish a first of its kind SCoE for teachers students and
industry engineers to develop a deeper understanding of the underlying multi-physics and design
principles for the manufacturing of various best in class electro-mechanical equipment in India.
The electro-mechanical equipment industry is a critical element in the success of the proposed
exponential growth in the Indian power sector and needs to reach a quality level among the best
in class to become a manufacturing hub of global repute. On 21 March 2017 ABB India
announced that it has restored and modernized the critical 1035 MW Sharavathi hydropower
plant in Karnataka which approximately accounts for 25 percent of the state utility Karnataka
Power Corporation's power generation. On 4 May 2017 ABB India inaugurated two new
facilities that support the nation's digital transformation energy saving technology and rise in
industrial productivity. In Bengaluru ABB India launched India's first digitalized remote service
center for its energy saving drives solutions and added a new production line for digitalized low
voltage drives. The ABB remote service center will provide 24x7 access to information and
support on drives installed at customer facilities for predictive maintenance and condition
monitoring for all industries including power cement oil and gas metals food & beverage and
many other applications. The new center is the third of its kind in the ABB global footprint and
is now fully activated in India. It will support customer installations in India and around the
An internship report on ABB INDIA

world. On 30 August 2017 ABB India announced that it has surpassed the 5 GW milestone for
the supply of solar inverters in India. Inverters are the heart of solar installations and ABB
pioneered inverter production in the country in 2012.On 10 January 2017 ABB India announced
that it has won a mega Rs 4350 crore project from Power Grid Corporation of India Limited to
deliver a transmission link that will have the capacity to bring reliable electricity to more than 80
million people. The Raigarh-Pugalur 800 kilovolt (kV) ultrahigh-voltage direct current
(UHVDC) system will connect Raigarh in Central India to Pugalur in the southern state of Tamil
Nadu. The 1830 kilometer (km) link will be among the longest in the world. On 19 January 2018
ABB India inaugurated a new factory for the production of power distribution products in Nashik
in Maharashtra. The best in class smart facility will be export focused. This factory is the only
one in the ABB universe to manufacture certain categories of products and supply across the
globe. The factory will manufacture outdoor products for substations like live tank vacuum-
circuit breaker auto reclosers and indoor ones like gas-insulated switchgear. The reclosers are
used on overhead power distribution systems to detect and interrupt momentary faults and to
improve uptime of the system. The gas-insulated switchgear (GIS) which occupy up to 45
percent less space than air insulated switchgears freeing up space for power distribution and is
very popular across industrial sectors like steel cement marine and also in distribution networks
due to its high reliability and safety. On 15 February 2018 ABB India announced the installation
of an electric-vehicle fast charging station at NITI Aayog in the national capital. ABB's 50kW
fast charging station can provide a full charge to an electric vehicle in only 30 minutes. On 27
March 2018 ABB India inaugurated one of the first smart factories in Bangalore for the
production of electrical protection and connection solutions. The facility will be located on the
existing factory premises of Nelamangala in Bangalore the start-up and IT capital of India. The
smart factory which is part of ABB's manufacturing 19-acre Nelamangala campus will house the
production line for the entire range of ABB's protection and connection business which helps to
protect power systems from surges and enables a reliable power supply for various installations.
The Bangalore facility will manufacture ABB's range of air and molded case circuit breakers
electronic and thermal relays contactors pilot devices and ABB's latest range of plug and play
low-voltage circuit breaker Emax 2. The products are key in optimizing resources reducing
energy and life-cycle costs and boosting the productivity of industrial installations across sectors
like process industries (cement textile chemicals and metals) marine data centers and automotive.
An internship report on ABB INDIA

During the FY2019the Bengaluru Bench of National Company Law Tribunal vide order dated
November 27 2019 sanctioned the Scheme of Arrangement between the Company ABB Power
Products and Systems India Limited (APPSIL) and respective shareholders & creditors involving
the demerger of the power grids business of the Company to APPSIL under the provisions of
Sections 230 - 232 and other applicable provisions of the Companies Act 2013 (Scheme). The
Scheme has become effective December 1 2019. Pursuant to the sanctioned Scheme APPSIL has
allotted equity shares to the shareholders of the Company on December 24 2019. Consequently
as per the Scheme the entire investment of Rs 100000 (50000 equity shares of Rs 2/- each) held
by the Company and its nominee shareholders stand cancelled.

Accordingly, APPSIL ceased to be a Subsidiary of the Company. As per approved Scheme of


Arrangement APPSIL has allotted the equity shares to the eligible members of the Company and
these equity shares have been listed In BSE Limited and National Stock Exchange of India
Limited. ABB Motion business recognized as `wind generator manufacturing company - 2019'
by India Wind Energy Forum. The company Won the 2019 Working Mother and Avtar Award
for being among the best 100 companies for women in India. During the FY2020 the Company
has sold Company's Solar Inverter Business as a going concern on slump sale basis to a wholly
owned Indian Subsidiary of Italian Company FIMER S.p.A viz Marici Solar India Private
Limited for a total value of Rs 105.63 Crore by way of Business Transfer Agreement (BTA)
which was effective April 1 2020.The company bagged the coveted Technology of the Year
Generator' 2020 Award from India Wind Energy Forum (IWEF). The COVID -19 pandemic is
rapidly spreading throughout the world ABB's plants and offices were under nationwide
lockdown since March 24 2020. Effective middle of May 2020 as per the directives of Ministry
of Home Affairs(MHA) wherein some relaxation was announced the Company opened up its
manufacturing activities in its locations across the country with 50% to 60% capacities after
putting in place the due safety precautions and standard norms and processes prescribed by the
MHA and the respective State Governments. Effective January 1 2021 Erstwhile Industrial
Automation segment has been renamed as Process Automation.

ii. Nature of the business:


An internship report on ABB INDIA

ABB is a leader in power and automation technologies that enables utility and industry
customers to improve their performance while lowering environmental impact. The ABB group
of companies operates in more than 100 countries with employees more than 1,20,000.

 A strong solutions paves way for manufacturers to improve productivity and quality of
product and worker safety.
 The company has served customers with the complete range of engineering products,
solutions and services in areas of automation and power technologies.
 Company has extensive installed base for manufacturing and presence of country wide
marketing.
 The company also plays an increasing role in the global marketing.

iii. Vision of ABB India:

As one of the world’s leading engineering companies, we help our customers to use electrical
power efficiently, to increase industrial productivity and to lower environmental impact in a
sustainable way.

Mission of ABB India:

 Improve performance :
ABB helps customers improve their operating performance, grid reliability and productivity
while saving energy and lowering environmental impact.
 Drive innovation:
Innovation and quality are key characteristics of our product, systems and service offering.
 Attract talent:
ABB is committed to attracting and retaining dedicated and skilled people and offering
employees an attractive, global work environment.

 Act responsibly:
An internship report on ABB INDIA

Sustainability, lowering environmental impact and business ethics are at the core of our
market offering and our own operations.

Quality policy of ABB India:

 To deliver on time and on quality products, system and services that meets or exceeds the
customer’s expectation.
 To identify and understand our customer’s expectations, measure customer perception and
enhance customer satisfaction.
 Strengthen the motivation and skills of our people to add value to the customer’s and to
business through continual training and development.
 Enable and engage the people at all level in a relentless drive to improve operational
performance along with giving attention to the chain from suppliers to customers.
 Leverage the partners and suppliers strength to improve the products and the business from
product design through production installation and operation.
 Continually improve environmental health and safety performance through all products
operation, system, and services.

iv. Workflow Model of ABB India:


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v. Products Profile:
POWER PRODUCTS
The division primarily serves electric utilities as well as gas and water utilities for customers in
utilities, industry, transport and infrastructure with a wide range of products and services to
facilitate power generation, transmission and distribution. Key technologies includes high and
medium voltage switch gears, circuit breakers for a range of current rating and voltage level
power, distribution and other special transformers, as well as product to help transmit and
distribute electricity facility effectively and reliably, maintain power quality as well as control
and manage electrical networks.

POWER SYSTEMS
The division delivers solutions across the power value chain. This includes system solution for
power generation, transmission technologies like HVDC and FACTS, substations and
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distribution technologies for network management. The scope of the typical turnkey project
includes designs, system engineering and supply, installation, commissioning and testing.
Integrate products from our own power products division and external suppliers, adding value
through domain expertise, engineering, product, management and life cycle support services.

DISCRETE AUTOMATION AND MOTION

This division provides products, solution and related services that increase industrial productivity
and energy efficiency. Its motors, generators, drives, programmable logic controller (PLC’s)
power electronics and robotics provide power, motion and control foe a wide range of
automation applications. The leading position in wind generator and growing offering in solar
complement the industrial focus, leveraging joint technology, channels and operation platforms.

PROCESS AUTOMATION
The main focus of the ABB business is to provide customers with production and services for
instrumentation, automation and optimization of industrial processes. The industry service
includes oil and gas, power, chemicals and pharmaceuticals, pulps and paper, metal and material,
marine turbo charging. Key customers benefits include improve asset productivity and energy
savings.

LOW VOLTAGE PRODUCTS


The low voltage products division manufactures low voltage circuit breakers, switches, and
control products, wiring accessories, enclosures and cable system to protect people, installation
and electronic equipment from electrical overloads. This division further makes KNX systems
that integrate and automate buildings electrical installations, ventilation systems, security and
data communication network.
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ELECTRIFICATION PRODUCTS

The electrification products division provides solution across the full electrical value chain from
the substation to the point of consumption. The electrification products segment manufactures
and sells the products and services including low and medium voltage switchgear (air and gas
insulated),Breakers, switches, control products, Deutsches institute fur Norman (DIN) rail
components, automation and distribution enclosures, wiring accessories and installation material
for a range of applications. It also includes the solar inverters, electric vehicle charges and power
protection activities. It also offers modular substation packages, distribution automation
products, switchgear, circuit breakers, measuring and sensing devices, control products, wiring
accessories and enclosures and cabling systems, including KNX systems (global standard for
home and building control) designed to integrate and automate a building’s lighting, heating and
ventilation, and security and data communication networks. It serves industry segments,
including buildings, data centers, rail, wind and solar, food and beverage, marine and oil and gas.

ROBOTICS AND MOTION


The robotics and motion segment manufactures and sells motors, generators, variable speed
drives, robots and robotics, wide convertors, rectifiers, excitation system, components and
subsystem for railways, and related services for a range of applications in discrete automation,
process industries, transportation and utilities. The robotics business offers robots, controllers,
software systems, as well as complete robot automation solutions and a range of services for
automotive, as well as for general industry. The motors and generators business supplies a range
of electrical motors, generators, and mechanical power transmission products. The drives and
controls business provides low voltage and medium voltage drives and system for industrial,
commercial and residential applications. Drives provide speed, torque and motion control for
equipment, such as fans, pumps, compressors, conveyors, centrifuges, mixers, hoists, cranes,
extruders, printing and textile machine. The power conversion business products excitation and
synchronizing systems that provide stability for power stations for power stations and high
power rectifiers that convert alternating current (AC) to direct current (DC) for high current
applications, such as electric arc furnaces and aluminum smelters. It also manufactures solar
inverters, wind turbine converters, uninterruptible power supply systems and convertors for
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power protection, as well as rail traction converters, dc wayside power solutions and a range of
solution for charging of electric vehicles. It also offers services, including design and project
management, engineering, installation, training and life cycle care, energy efficiency appraisals
and preventive maintenance. Its customers include machinery manufactures, process industries,
such as pulp and paper, oil and gas, metals and mining companies, hybrid, and batch
manufactures, such as food and beverage companies, rail equipment manufactures and discrete
manufacturing companies.

INDUSTRIAL AUTOMATION

The industrial automation segment develops and sells control and plant optimization systems,
automation products and solutions, including instrumentation, as well as industry specific
application knowledge and services for the oil, gas and petrochemicals, metals and minerals,
marine and turbo charging, pulp and paper, chemical and pharmaceuticals, and power industries.
The oil, gas and chemicals business provides solution across the entire hydrocarbon value chain,
from exploration and production to supply, transport and distribution, as well as refining,
chemicals and petrochemicals. Its other process industry, markets served include mining,
minerals processing, metals, pharmaceuticals and pulp and paper, as well as their associated
service industries.

The company serves the power generation market with automation services for a range of power
generation such as coal, gas, combined cycle, waste to energy, as well as renewable sources,
such as hydro, solar, wind and biomass. The company services the marine and ports business
through its solutions for specialty vessels, container and bulk cargo handling. The offerings of
the measurement and analytics business are designed to measure product properties, such as
weight, thickness, color, brightness, moisture content and additive content. It manufactures and
maintains turbochargers for diesel and gas engines.

POWER GRIDS
The power grids segments supplies power and automation products, systems, and services and
software solutions for power generation, transmission and distribution to utility, industry,
transportation and infrastructure customers. These offerings address evolving grid development,
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which include the integration of renewable, network control, digital substations, micro grids and
asset management. The segment also manufactures a range of power, distribution and traction
transformers, an array of high voltage products, including circuit breakers, switchgear, capacitors
and power transmission systems.

The grid systems business provides high voltage, direct current (HVDC) systems. These systems
use line commutated converter (HVDC classic) technologies or voltage sourced converter
(HVDC light) technology. The grid integration business provides transmission and distribution
substations and associated life cycle services. The transformers business supplies transformers.
The high voltage products business provides high voltage switchgear with a portfolio spanning
air insulated, gas insulated and hybrid technologies. It also manufactures generator circuit
breakers. The grid automation business supplies substation automation products, systems and
services. It also provides Supervisory Control and Data Acquisition (SCADA) systems for
transmission and distribution networks, as well as a range of wireless, fiber optic and power line
carrier based telecommunication technologies for mission critical applications. It also offers
microgram solutions that are deployed for remote and partially grid connected applications.

CORPORATE AND OTHER


The corporate and other segment includes headquarters, central research and development, and
the company’s real estate activities. It also includes treasury operations and other business
activities.

vi. Ownership pattern of ABB India:


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3 3 3 3 3 3 3 3
No. of Mths
Sep- Dec- Mar Jun- Sep- Dec- Mar Jun-
Qtr. Ending
19 19 -20 20 20 20 -21 21

75.0
Indian Promoters % 0.00 0.00 0.00 0.00 0.00 0.00 0.00
0

75.0 75.0 75.0 75.0 75.0 75.0 75.0


Foreign Promoters % 0.00
0 0 0 0 0 0 0

75.0 75.0 75.0 75.0 75.0 75.0 75.0 75.0


Total Promoters %
0 0 0 0 0 0 0 0

Mutual Funds % 6.72 6.44 6.36 5.78 5.73 6.53 6.92 6.71

Financial
institution/Banks/In % 5.45 5.23 5.25 5.28 0.61 0.43 0.34 0.35
surance

Government % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

FII % 3.42 3.38 3.31 3.78 3.47 4.06 3.83 3.73

Other % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

15.5 15.0 14.9 14.8 11.0 11.0 10.7


Total Institution % 9.81
9 5 2 4 2 9 9

Bodies Corporate % 0.00 0.00 0.00 0.00 0.33 0.00 0.00 0.00

Individuals % 6.77 6.87 6.93 7.16 7.33 7.05 6.96 6.86

NRIs/OCBs % 0.00 0.00 0.00 0.00 0.29 0.00 0.00 0.00

ADR/GDR % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Others % 2.64 3.08 3.15 3.00 7.24 6.93 6.95 7.35

Total Non- % 9.41 9.95 10.0 10.1 15.1 13.9 13.9 14.2
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3 3 3 3 3 3 3 3
No. of Mths
Sep- Dec- Mar Jun- Sep- Dec- Mar Jun-
Qtr. Ending
19 19 -20 20 20 20 -21 21

Institution 8 6 9 8 1 1

25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0


Total Public %
0 0 0 0 0 0 0 0

100. 100. 100. 100. 100. 100. 100. 100.


Grand Total %
00 00 00 00 00 00 00 00

Pledged Promoter
% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Holding

vii. Achievements and Awards of ABB India:

 ABB Digital Chief Guido Jouret receives India’s NASSCOM ‘Digital Evangelist’
Award.

 The India Smart Grid Foundation (ISGF) Innovation Award, one of India’s most
prestigious ones, recognized ABB India’s efforts by awarding the “Smart Technology of
the Year 2016” to this project.
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 For the second year in a row, ABB india received “Wind Turbine Generator
Manufacturer of the year” Award at the India Wind Energy Forum (IWEF) 2017

 Large Motors and Generator Unit, Vadodara was recognized as a Leader in the category
of “Excellence in Operations Management – Power Sector” at the 25th National Quality
Summit organized by CII Institute of Quality

 ABB India has won 46 awards and appreciation letters for adhering to and propagating
safety at customer sites and across its operations

viii. Future growth and prospects of ABB India:

The S&P BSE Capital Goods Index has gained 138 per cent since the March 2020
market low. Closely on the heels of this, engineering and capital goods company, ABB
India has seen its stock rise 106 per cent since March 2020 and 135 per cent since its low
of ₹726 in May 2020.

There has been a sharp recovery in the financial performance of ABB India from the start of
2021. The closure of business activity and the economic slowdown post the Covid-19 outbreak
had dented ABB India’s revenue and profitability in first half of CY 2020.

At ₹1,708 per share, the ABB India stock trades at a trailing twelve-month price to earnings
(TTM P/E) multiple of 103 times. MNC peers listed in India such as Siemens and GE T&D India
are trading at TTM P/E multiples of 82 and 58 times respectively.

The pick-up in overall economic activity and strong demand from high-growth segments such as
data centers, renewable energy, electronics and food and beverage among others should drive
ABB India’s growth in the coming years. Demand from segments such as power distribution,
railways and metro and water and waste management will be backed by government initiatives in
these areas.

While ABB India may be well-placed to ride the cyclical recovery wave, its pricey stock
valuations call for caution. Investors can, therefore, consider booking profit in the stock. While
the company’s existing order backlog of ₹4,583 crore as of June-end 2021 offers some revenue
visibility, it is not substantially higher from that in the past. While this along with higher price
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realisations in certain segments may drive future revenue growth, a rise in commodity prices
may impose some pressure on operating profit margins.

With the stock price having run up sharply, unless the earnings grow at an accelerated pace for
the next few years, scope for futher stock upside appears limited. Between 2017 and 2019, ABB
India’s revenue from continued operations rose at a CAGR of 7.9 per cent to ₹7,315 crore and
operating profit fell 6.8 per cent to ₹441 crore. Aided by lower fixed costs, the net profit
(including the one-time impact of exceptional cost of ₹70 crore) rose 16 per cent (CAGR)
to ₹302 crore during this period. The EBITDA margins came down from 9.7 per cent in 2017 to
7.3 per cent in 2019. The performance in 2020 was hurt by Covid-induced lockdowns.

Business
ABB India is a 75 per cent subsidiary of Swedish-Swiss multi-national company, ABB. Its
business comprises products and system solutions relating to electrification (39 per cent of
revenue), motion (36 per cent), process automation (21 per cent), and robotics and discrete
automation (4 per cent). generating revenue of ₹3,045 crore in the Jan – Jun 2021 period. ABB
reports its financials on a calendar year basis. In terms of profitability, these segments
contributed 36 per cent, 46 per cent, 14 per cent and 4 per cent of the company’s PBIT (profit
before interest and tax) of ₹224 crore during the same period.

ABB India’s electrification segment provides power protection products, switchgears, wiring
accessories and cabling. The motion segment provides motors, generators and drives for
automatic applications. The process automation (erstwhile industrial automation) products which
include control systems find use in industrial processes in sectors including oil and gas, power,
chemicals and pharmaceuticals.

ABB India’s robotic solutions find applications in electronics, automotive, food and beverage
and FMCG industries. The company set up a new robotics facility in Bengaluru in 2020. Given
their low penetration, robotics and artificial intelligence will be high-growth areas for the
company in terms of revenue and profitability.

Financials
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In 2020, the Covid-induced lockdowns resulting in factory closures, logistical challenges and a
tepid demand hurt revenue which declined 20.4 per cent to₹5,821 crore compared to year ago.
This, despite the fall in operating expenses, dented operating profit, and along with exceptional
one-off items impacted the net profit. ABB India reported a y-o-y 65 per cent fall in operating
profit to ₹155 crore and 54 per cent fall in net profit to ₹172 crore (adjusted for one-off
exceptional items) in 2020.

ABB India registered a strong performance in the latest June 2021 quarter – 45 per cent year-on-
year increase in revenue to ₹1,425 crore, operating profit of ₹66 crore against loss of under ₹1
crore a year ago and 306 per cent jump in net profit to ₹68 crore. This was driven by strong
revenue growth across business segments helped by a strong execution of backlog orders, cost
optimization efforts and better capacity utilization. The low base of last year too helped. Only
continuing business operation numbers have been considered.

ABB India has a strong balance sheet. The company had zero debt and cash balance of ₹2,364
crore (₹1,498 crore last year ) as of June-end 2021.

 
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CHPATER 3: MCKENSEY’S 7S FRAMEWORK AND PORTER’S FIVE FORCE


MODEL.

MCKENSEY’S 7S FRAMEWORK:

The McKinsey 7s model is a strategic tool and framework that helps managers and businesses
assess their performance. The McKinsey 7s model identifies 7 key elements for an organization
that need to be focused and aligned for successful change management processes as well as for
regular performance enhancements.
The 7s are:
• Structure
• Strategy
• Skills
• Style
• Staff
• Shared values
ABB makes use of the McKinsey 7s model to regularly enhance its performance, and implement
successful change management processes. ABB focuses on the 7 elements identified in the
model to ensure that its performance levels are consistently maintained, and improved for the
offerings.
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 Hard elements
The hard elements of the McKinsey 7s model comprise of strategy, structure, and
systems. The hard elements of the model are easier to identify, more tangible in nature,
and directly controlled and influenced by the leadership and management of the
organization. 
a. Strategy
i. Clearly defined 
The strategic direction and the overall business strategy for ABB are clearly defined and
communicated to all the employees and stakeholders. This helps the organization manage
performance, guide actions, and devise different tactics that are aligned with the business
strategy. Moreover, the business strategy’s definition and communication also make operations
for ABB more transparent and aligns the responsibilities and actions of the company.

ii. Guiding behavior for goal attainment


The strategic direction for ABB is also important in helping the business guide employee, staff,
and stakeholder behavior towards the attainment and achievement of goals. SMART Goals are
set with short and long term deadlines in accordance with the business strategy. The business
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strategy helps employees decide tactics and behaviors for attaining the set goals and targets to
help the business grow.

iii.Competitive pressures
ABB’s strategy also takes into consideration the competitive pressures and activities of
competitors. The strategy addresses these competitive pressures through suggestive measures
and actions to address competition via strategic tactics and activities that ensure sustainability to
ABB via adapting to market changes, and evolving consumer trends and demands.

iv. Changing consumer demands


An important aspect of the strategy at ABB is that it takes into constant consideration the
changing consumer trends and demands, as well as the evolving consumer market patterns and
consumption behavior. This is an important part of the strategic direction at ABB as it allows the
company to remain competitive and relevant to its target consumer groups, as well as allows the
company to identify demand gaps in the consumer market. The company then strategically
addresses these gaps through product offerings and marketing activities which give the company
successful and leading-edge over other patterns in the market.

V. Flexibility and adaptability


The strategy at ABB is flexible and adaptable. This is an important aspect of the strategic
direction, and strategy setting at ABB. Rigidity in strategy leads a company and a business to
often become stagnant and obstructs advancement, and progression with evolving changes in the
consumer markets. 

With flexibility and adaptability, the ABB is not only able to benefit from quickly reacting and
responding to changing consumer patterns globally, but is also able to locally and culturally
adapt its products via localization for different countries and regions. Moreover, the company is
often able to proactively predict consumer market changes, and devise strategic changes
accordingly to meet the market trends.
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b. Structure
i.. Organizational hierarchy
ABB has a flatter organizational hierarchy that is supported by learning and progressive
organizations. With lesser managerial levels in between and more access to the senior
management and leadership, the employees feel more secure and confident and also have higher
access to information. Moreover, the flatter hierarchy also allows quicker decision-making
processes for ABB and increases organizational commitment in the employees.

ii. Inter-Departmental coordination


ABB has high coordination between different departments. The company’s departments often
form inter-department teams for projects and tasks that require multiple expertise. All
coordination between different departments is effective and organized. ABB has a systematic
process for initiating and monitoring coordination between departments to ensure smooth work
operations and processes – and goal attainment.

iii. Internal team dynamics [department specific]


ABB encourages teamwork and team-oriented tasks. Where jobs require individual attention and
scope, the company also assigns individual responsibilities and job tasks. However, all
employees at ABB are expected to be team players who can work well with and through other
members, and who get along well with other people. The teams at ABB are supportive of all
embers and work in synch with synergy towards achieving the broader team objectives and goals
under the ABB designed strategy and values. 

iv. Centralization vs. decentralization


ABB has a hybrid structure between centralization and decentralization. Like many progressive
organizations, ABB largely supports decentralized decision making. Job roles at ABB are
designed to be carried out with responsibility, and employees often set their goals with mutual
coordination and understanding with the supervisors. 
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However, ABB is also centralized in making sure that supervisors oversee, and approve of the
various efforts, and tactics that employees choose to ensure that they are aligned with the
organizational strategy ad values. 

v.. Communication 
ABB has a developed and intricate system for ensuring communication between employees, and
different managerial levels. The communication systems at ABB enhance the overall
organizational structure. The systematic, defined, and organized communication allows an easy
flow of information and ensures that no organizational tasks and goals are compromised because
of a lack of communication, or misunderstandings.

c. Systems
i. Organizational systems in place
ABB has defined and well-demarcated systems in place to ensure that the business operations are
managed effectively and that there are no conflicts or disputes. The systems at ABB are largely
departmental in nature, and include, for example:

- Human resource management

- Finance

- Marketing

- Operations

- Sales

- Supply chain management

- Public Relation Management

- Strategic leadership
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 ii. Defined controls for systems


Each of the defined and demarcated systems at ABB has especially designed tools and methods
as controls for evaluating performance and goal attainment. These controls and measures are
designed specifically in different departments based on the nature of their tasks and
responsibilities. Moreover, each department also designs specific controls for members for
performance evaluation, as well as for inter-departmental tasks and responsibilities.

iii. Monitoring and evaluating controls


ABB continually evaluates its systems through the designed controls. This monitoring of the
performance is continual and ongoing. This is largely done through observation and informal
discussions. Feedback to employees and overall department heads is informally given regularly
as and when is required. Formal evaluation of performance is also conducted semiannually – or
quarterly, depending on the need and the urgency of the projects and assigned tasks. This is a
formal process that is undertaken by supervisors and managers to ensure the identification of
performance lags, and suggestive means of improvement.

iv. Internal processes for organizational alignment


 ABB also has special processes and methods for ensuring that all departments and systems
within the organization are aligned and working in harmony towards the greater business goals
and targets. This is made possible through ensuring that all systems are designing and working
towards goals and targets specific to their expertise under the broader business vision and
strategy. Moreover, the strategic leadership at ABB also ensures that all systems are allocated
with resources, and set specific targets to achieve similar business goals in any specific period. 

 Soft elements
The soft elements of the McKinsey 7s model, in turn, include shared values, staff, skills, and
strategy. These elements are less tangible in nature and are more influenced by the organizational
culture. As such, the management does not have direct influence or control over them. These
elements are also harder to describe and directly identify – but are equally important for an
organization’s success and improved performance..

a. Shared values 
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i. Core values
The core values at ABB are defined and communicated to foster a creative and supportive
organizational structure that will allow employees to perform optimally, and enhance their
motivation and organizational commitment. The core values at ABB include, but are not limited
to:

- Creativity

- Honesty

- Transparency

- Accountability

- Trust

- Quality

- Heritage

The ABB business also ensures that all its activities and operations are conducted with high
ethical and moral standards that redefined and benchmarked against international criteria. 

ii. Corporate culture


ABB encourages an inclusive culture that celebrates diversity. The company has an international
presence, and production units that are spread across different countries, as such, ABB ensure
that its organizational culture is supportive of diversity, and has internal policies to reduce
incidences of discrimination.

The corporate culture at ABB also encourages innovation and creativity by allowing
independence for growth to individuals and teams –thus helping them refine their careers as well
as personalities. Lastly, the corporate culture at ABB also has a supportive leadership which
works towards increasing employee motivation and job satisfaction by giving way to visibility
and accessibility.
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iii. Task alignment with values


ABB ensures that all its job tasks and roles are aligned with the core values that the company
propagates. This means that all activities, tactics, and strategic tactics employed by ABB will
reflect its core values, and will not deviate away from these. This is to ensure a consistent, and
reliable brand image, as well as an honest organizational culture. In the event of organizational
change, the company will continue to ensure that all change management processes and methods
incorporate the core values so that the organizational culture is consistently maintained, and
systematically changed if need be. 

b. Style 
i. Management/leadership style
ABB has a participative leadership style. Through a participative leadership style, ABB is able to
engage and involve its employees in decision-making processes and managerial decisions. This
also allows the leadership to regularly interact with the employees and different managerial
groups to identify any potential conflicts for resolution, as well as for feedback regarding
strategic tactics and operations. Through its participative leadership, ABB is able to enhance
employee motivation, and increase organizational commitment and ownership amongst
employees as well as other stakeholders.

ii.. Effectiveness of leadership style


The participative leadership style is highly effective in achieving the business goals and vision of
the organization. Employees feel to be active members of the organization who are valued for
their suggestions, feedback, and input. Moreover, through participative leadership, leaders and
managers are able to identify current and potential conflicts within the ABB organization, and
actively work to resolve them as soon as possible. 

iii.Cooperation vs competition – internally


With its supportive and encouraging organizational culture, ABB gives way to internal
collaboration and cooperation between employees, systems, teams, and departments. This
cooperation and collaboration at ABB is important since its operations are spread globally, and
also because tasks and responsibilities within the company often require inter-departmental
feedback and input. Moreover, with increased expansion, and synergy, the business also
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regularly forms project teams – which function effectively because of the cooperative and
collaborative culture within the ABB organization. 

iv. Team vs groups


 ABB has effective and functional teams and works with them internally to achieve its various
business goals and objectives, and complete tasks. The company’s management is encouraging
and supportive, and the leadership provides a motivating and pragmatic vision toad achieve. The
human resource management system, as well as the organizational training, supports all
employees in their growth fairly and transparently. This leads to effective team formation instead
of nominal groups within the organization for various projects, as well as department-specific
tasks and roles. 

c. Staff
i. Employee skill level vs business goals
ABB has a sufficient number of employees employed across its global operations. Employees for
different job roles and positions are hired internally as well as externally – depending on the
urgency and the skill levels required. Based on this, it is seen that ABB has employees who are
skilled as per the requirements of their job roles and positions. All employees are given in house
training to familiarize themselves with the company and its values. External training along with
in-house training is provided for skill level enhancement.

All job roles and positions are designed to facilitate the achievement of business goals, and as
such, employee skill level at ABB is sufficient to achieve the business goals of the company. 

ii.Number of employees
ABB has employed a large number of employees. The number of employees varies from country
to country as per the requirements and needs of the business and operations. The global team of
ABB is an inclusive one that accepts, and encourages diversity, and works in synchronization
with members to ensure attainment of business goals. The team member sand employees are the
most important part of business success for ABB.
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iii.Gaps in required capabilities and capacities


ABB has a well-defined system for identifying potential needs of capabilities and capacities for
the organization. The human resource function of the business has a systematic process that
aligns all other departments to identify potential vacancies or skill gaps. Based on the nature of
the need, the human resource department arranges for recruitments which may be permanent or
contractual in nature, as well as arranges training sessions if need be for the current workforce. 

 d. Skills

i. Employee skills
ABB has a commendable workforce, with high skills and capacities. All employees are recruited
based on their merit and qualifications. ABB prides itself on hiring the best professionals and
grooming them further to facilitate growth and development.

ii. Employee skills vs task requirements


ABB has defined tasks and job roles and hires and trains employees for skill levels accordingly
with respect to those. The company ensures that all its job requirements are met and that
employees have the sufficient skills to perform their respective jobs in accordance with the
values and culture as well as the business goals and strategy of ABB. 

iii.Skill management
ABB pays particular attention to enhancing the skills and capacities of its employees. It arranges
regular training and workshops – internally as well as externally managed- to provide growth and
development opportunities for its employees. ABB focuses on personal as well as professional
growth for its employees and works accordingly with them.

iv. Company’s competitive advantage


The human resource is one of the core competitive advantages of the company. The skills of
employees are developed specifically for job roles and requirements at ABB and provide a
competitive benefit to the company – where players cannot imitate employee skills or training.
This creates a unique and non-substitutable competency for ABB. 

PORTER’S FIVE FORCES MODEL:


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Porter Five Forces Analysis is a strategic management tool to analyze industry and understand
underlying levers of profitability in each industry. In his revolutionary article - "Five Forces that
Shape Strategy", Michael Porter observed five forces that have significant impact on a firm's
profitability in its industry. These five forces analysis today in business world is also known as -
Porter Five Forces Analysis. The Porter Five (5) Forces are -

 Threat of New Entrants


 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Threat from Substitute Products
 Rivalry among the existing players.

Threats of New Entrants

Threat of new entrants is low. The reasons for the threats of the new entrants are as follows:
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 The capital intensive nature of the industry is one of the major reason behind the low
threats of new entrants to the company.

 Another reason is the presence of big players which blocks the entry of new players.

New entrants in the electical equipment brings innovation, new ways of doing things and
put pressure on ABB Ltd through lower pricing strategy, reducing  costs, and providing
new value propositions to the customers. ABB Ltd has to manage all these challenges and
build effective barriers to safeguard its competitive edge.

How ABB Ltd can tackle the Threats of New Entrants

 By innovating new products and services. New products not only brings new customers
to the fold but also give old customer a reason to buy ABB Ltd ‘s products.
 By building economies of scale so that it can lower the fixed cost per unit. 
 Building capacities and spending money on research and development. New entrants are
less likely to enter a dynamic industry where the established players such as ABB Ltd
keep defining the standards regularly. It significantly reduces the window of
extraordinary profits for the new firms thus discourage new players in the industry.

Bargaining Power of Suppliers

Bargaining power of suppliers is low. The reasons for the low bargaining power of suppliers are
as follows:

 The suppliers tend to have longer term contracts with the companies.
An internship report on ABB INDIA

 Almost all the companies in the diversified machinery industry buy their raw materials
from numerous suppliers.

Suppliers in dominant position can decrease the margins ABB Ltd can earn in the market.
Powerful suppliers in Industrial Goods sector use their negotiating power to extract higher prices
from the firms in the electrical equipment field. The overall impact of higher supplier bargaining
power is that it lowers the overall profitability of the electrical equipment industry.

How ABB Ltd can tackle Bargaining Power of the Suppliers

 By building efficient supply chain with multiple suppliers.


 By experimenting with product designs using different materials so that if the prices go
up of one raw material, then company can shift to another.
 Developing dedicated suppliers whose business depends upon the firm. One of the
lessons ABB Ltd can learn from Wal-Mart and Nike is how these companies developed
third party manufacturers whose business solely depends on them thus creating a scenario
where these third-party manufacturers have significantly less bargaining power compared
to Wal-Mart and Nike.

Bargaining Power of Buyers

Bargaining power is medium. The reasons for the medium bargaining power of buyers are as
follows:

 High price sensitivity


 Buyers are limited and majorly government agencies which lend higher negotiating
power.

Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on ABB Ltd profitability in the long run. The
smaller and more powerful the customer base is of ABB Ltd the higher the bargaining power of
the customers and higher their ability to seek increasing discounts and offers.
An internship report on ABB INDIA

How ABB Ltd can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to
streamline its sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if ABB Ltd keep on coming up with new products then it can
limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of ABB Ltd to its
competitors.

Threats of Substitute Products or Services

Threat from substitutes is low. The reasons for the threats of substitute products or services are
as follows:

 Other substitutes such as solar and wind plants are less developed compared to electrical
transformers.

When a new product or service meets a similar customer needs in different ways, industry
profitability suffers. For example services like Dropbox and Google Drive are substitute to
storage hardware drives. The threat of a substitute product or service is high if it offers a
value proposition that is uniquely different from present offerings of the industry.

How ABB Ltd can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.


 By understanding the core need of the customer rather than what the customer is buying.
 By increasing the switching cost for the customers.
An internship report on ABB INDIA

Rivalry among the Existing Competitors

With a small number of firms in the high-end equipment market, competition is moderate in the
sector. The reasons for the moderate rivalry among the competitors are as follows:

 Large players provide complete solutions. Government plans to increase investment in


power, so the rivalry is expected to increase.

How ABB Ltd can tackle Intense Rivalry among the Existing Competitors in the
industry

 By building a sustainable differentiation


 By building scale so that it can compete better
 Collaborating with competitors to increase the market size rather than just competing for
small market.
An internship report on ABB INDIA

CHAPTER 4: SWOT ANALYSIS

As one of the leading organizations in its industry, ABB Ltd has numerous strengths that help it
to thrive in the market place. These strengths not only help it to protect the market share in
existing markets but also help in penetrating new markets. Some of the strengths are:

 The company with its dedicated customer relationship management department has able
to achieve a high level of customer satisfaction among present customers and good brand
equity among the potential customers.
 It has built a culture among distributor & dealers where the dealers not only promote
company’s products but also invest in training the sales team to explain to the customer
how he/she can extract the maximum benefits out of the products.
 It has successfully integrated number of technology companies in the past few years to
streamline its operations and to build a reliable supply chain.
 ABB Ltd is relatively successful at execution of new projects and generated good returns
on capital expenditure by building new revenue streams.
 ABB Ltd has built expertise at entering new markets and making success of them. The
expansion has helped the organization to build new revenue stream and diversify the
economic cycle risk in the markets it operates in.
 Automation of activities brought consistency of quality to ABB Ltd products and has
enabled the company to scale up and scale down based on the demand conditions in the
market.

 Highly skilled workforce through successful training and learning programs. ABB Ltd is
investing huge resources in training and development of its employees resulting in a
workforce that is not only highly skilled but also motivated to achieve more.
 ABB Ltd has strong free cash flows that provide resources in the hand of the company to
expand into new projects.

Weakness are the areas where ABB Ltd can improve upon. Strategy is about making choices and
weakness are the areas where an organization can improve using SWOT analysis and build on its
An internship report on ABB INDIA

competitive advantage and strategic positioning. Some of the weaknesses of the company are as
follows:

 ABB India operates in an increasingly competitive market scenario which has several
domestic as well as international players. To counter this, the company has been
focusing on cost optimisation. Although its continued focus on cost efficiency will help
arrest the decline in operating margin to some extent, it will remain susceptible to intense
competition over the medium term.
 The revenue for the company for the past three years has decreased.
 The company has been paying high royalties to the parent company but higher
royalty payments by Indian subsidiaries of foreign companies bring in better
technologies but can hurt the interests of minority shareholders.

Opportunities of the company are as follows


 Stable free cash flow provides opportunities to invest in adjacent product segments. With
more cash in bank the company can invest in new technologies as well as in new products
segments. This should open a window
of opportunity for ABB Ltd in other product categories.
 The new technology provides an opportunity to ABB Ltd to practices differentiated
pricing strategy in the new market.
 Economic uptick and increase in customer spending, after years of recession
and slow growth rate in the industry, is an opportunity for ABB Ltd to capture new
customers and increase its market share.
 The market development will lead to dilution of competitor’s advantage and enable ABB
Ltd to increase its competitiveness compared to the other competitors.
 Increase in demand for smart grids increases demand for the companies that manufacture,
supply or build smart grid infrastructure.
 Over the past few years, the company has invested vast sum of money into the online
platform. This investment has opened new sales channel for ABB Ltd. In the next few
years, the company can leverage this opportunity by knowing its customer better and
serving their needs using big data analytics.
An internship report on ABB INDIA

 New trends in the consumer behavior can open up new market for the ABB Ltd . It
provides a great opportunity for the organization to build new revenue streams and
diversify into new product categories too.

Threats of the company are as follows:

 Liability laws in different countries are different and ABB Ltd may be exposed to various
liability claims given change in policies in those markets.
 As the company is operating in numerous countries it is exposed to currency fluctuations
especially given the volatile political climate in number of markets across the world.
 New technologies developed by the competitor or market disruptor could be a serious
threat to the industry in medium to long term future.
 Stable profitability has increased the number of players in the industry over last two
years which has put downward pressure on not only profitability but also on overall sales.
An internship report on ABB INDIA

CHAPTER 5: ANALYSIS OF FINANCIAL STATEMENTS

1. Current Ratio:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term
obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assests on its balance sheet to satisfy its current debt and other payables.

Current ratio = Current Assets/Current Liability

Table 5.1: Table showing current ratio

Years Current Assets Current Liabilities Current Ratio

(in crores) (in crores)

2020 6083.64 3933.92 1.55:1

2019 6398.19 4125.13 1.55:1

2018 7525.12 5031.77 1.50:1

Analysis:

In the above table, we can see that the current ratio for the year 2020 is 1.55:1. For the year 2019,
the current ratio is 1.55:1 and for the year 2018, the current ratio is 1.5:1.

Years 2020 2019 2018

Current Ratio 1.55 1.55 1.50


An internship report on ABB INDIA

Graph showing current ratios:

Interpretation:

From the above graph and table , we can infer that the current ratio of the company in the years
2018 is 1.5 and is considered healthy. In the year 2019, the current ratio has increased to 1.55 .
The current ratio for the year 2020 is 1.55. A ratio of 1.5 or higher suggests that the company
can comfortably manage its borrowing costs. It also m means that the company has enough
liquid funds to meet its short term liabilities. We can also the current situation in which the
company is in is a desirable position as the current assets is greater than the current liabilities.

2. Dividend payout ratio

The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders
relative to the net income of the company. It is the percentage of earnings paid to shareholders
via dividends. The amount that is not paid to shareholders is retained by the company to pay off
debt or to reinvest in core operations.

Dividend payout ratio = Total dividends/Net income*100


An internship report on ABB INDIA

Table 5.2: Table showing dividend payout ratio

Years Total dividends Net income Dividend


(in crores) (in crores) payout ratio
(%)

2020 101.72 219.22 46.4

2019 101.72 303.40 33.52

2018 93.24 510.89 18.25

Analysis:

The dividend payout ratio for the year 2020 is 46.4% and the ratio is 33.52 in the year 2019. The
dividend payout for the year 2018 is 18.25%.

Years 2020 2019 2018

Dividend payout ratio(%) 46.4 33.25 18.25

Graph showing the dividend payout ratio


An internship report on ABB INDIA

Interpretation:

Generally speaking, a dividend payout ratio of 30-50% is considered healthy, while anything over 50%
could be unsustainable. So the ratio for the years 2020 and 2019 being 46.4% and 33.52% respectively
can be considered healthy. However, the dividend payout ratio for the year 2018 has decreased to 18.25%
and is considered to be not good.

3. Net profit margin

The net profit margin, or simply net margin, measures how much net income or profit is
generated as a percentage of revenue. It is the ratio of net profits to revenues  for a company or
business segment. Net profit margin is typically expressed as a percentage but can also be
represented in decimal form.

Net profit margin= Net profit/Total revenue * 100


An internship report on ABB INDIA

Table 5.3: Table showing the net profit margin.

Years Net profit Total revenue Net profit margin


(in crores) (in crores) (%)

2020 219.22 5820.95 3.76%

2019 303.4 7315.06 4.14%

2018 510.89 6690.12 7.63%

Analysis:

The net profit margin is 3.36% in the year 2020 and has increased to 4.14% in the year 2019. The
net profit margin is 7.63% in the year 2018.

Years 2020 2019 2018

Net profit margin (%) 3.76% 4.14% 7.63%

Graph showing net profit margin


An internship report on ABB INDIA

Interpretation:

A general rule of thumb says that a 10% net profit margin is considered average and 5% margin
is considered low. So we can infer that the net profit margin for the years 2020 and 2019 is low.
A low profit margin means that the company uses an ineffective cost structure or poor pricing
strategies. A low ratio can result from inefficient management and high costs(expenses). A low
ratio can be improved by potentially reducing the costs of the business or increasing net sales.
The net profit margin for the year 2018 is 7.63%.

4. Shareholders equity ratio

The shareholder equity ratio indicates how much of a company's assets have been generated by
issuing equity shares rather than by taking on debt. The shareholder equity ratio is expressed as a
percentage and calculated by dividing total shareholders capital  by the total assets of the
company. The result represents the amount of the assets on which shareholders have a residual
claim.

Shareholder’s equity ratio = Total share equity/Total assets*100


An internship report on ABB INDIA

Table 5.4: Table showing the shareholders equity ratio

Years Total shareholders’ Total assets (in Shareholders’


equity (in crores) crores) equity in (%)

2020 3606.38 7590.5 47.51

2019 3520.11 7700.83 45.71

2018 4007.32 8888.05 45.08

Analysis:

The shareholders equity ratio for the year 2020 is 47.51% and is 45.71% for the year 2019 is
45.71% respectively. The shareholders equity ratio for the year 2018 is 45.08%

Years 2020 2019 2018

Shareholders’ equity ratio (%) 47.51 45.71 45.08

Graph showing the shareholders equity


An internship report on ABB INDIA

Interpretation:

Companies with the shareholders equity ratio of 0.50 or below are comsidered leverage. From
the table and the graph we can infer that keeping the shateholderse equity ratio in mind for the
past 3 years , ABB India can be considered as a leverage ratio. The ratios for the 3 years can be
considered as low. A low shareholders equity ratio indicates that the company has taken on more
debt than the shareholders equity to finance its assets.

5. Asset turnover ratio

The asset turnover ratio measures the value of a company's sales or revenues relative to the value
of its assets. The asset turnover ratio can be used as an indicator of the efficiency with which a
company is using its assets to generate revenue.

Asset turnover ratio = Total revenue/Total assets *100


An internship report on ABB INDIA

Table 5.5: Table showing asset turnover ratio

Years Total revenue Total assets Asset


(in crores) (in crores) turnover ratio

2020 5820.95 7590.5 0.76

2019 7315.06 7700.83 0.94

2018 6690.12 9076.9 0.73


Analysis:

The asset turnover ratio for the years 2020 and 2019 is 0.76 and 0.94 respectively. The ratio for
the year 2018 is 0.73.

Years 2020 2019 2018

Asset turnover ratio 0.76 0.94 0.73

Graph showing the asset turnover ratio:


An internship report on ABB INDIA

Interpretation:

Since the asset turnover for the years 2020,2019 and 2018 is less than 1, we can infer that it is
not good for the company as the total assets are not enough to produce enough revenue at the end
of the year. A lower ratio indicates poor efficiency, which maybe due to poor utilization of fixed
assets, poor collection methods or poor inventory management.
An internship report on ABB INDIA
An internship report on ABB INDIA

LEARING EXPERIENCE:

It was a great experience to undertake the internship at ABB India. I got a good insight into the
functioning of the company and got a good industrial exposure. The internship helped to
understand to apply concepts learnt during our course of study.

In the first chapter, I learnt about the industry profile of the company which is an electrical
equipment industry. I leant that the industry caters to the need of energy sector and other
industrial sectors.

The second chapter helped me to gain an in-depth knowledge about the organization profile of
the company. It helped me to understand the nature of the business, the organizational structure
of the company, the products profile of the company. I also got an insight about the future
prospects and growth of the company.

In the third chapter, I learnt the application of various concepts like Porters five forces model,
McKensey’s 7S model. Porter’s Five Forces framework is a method of analyzing the operating
environment of a competition of a business. The McKensey’s 7S model refers to a tool that
analyzes a company’s organizational design.

The fourth chapter helped me to gain knowledge about the SWOT analysis and helped me to
understand the position of the company.

Calculation of several ratios helped me to understand the reasons behind a company’s success or
failure. The solid demand for ABB India’s products, solutions and services portfolio in many of
the targeted market segments reflects the profitability of the company.
An internship report on ABB INDIA

BIBILOGRAPHY:

www.moneycontrol.com

www.new.abb.com

www.essay48.com

www.case48.com
An internship report on ABB INDIA

ANNEXURE:

BALANCE SHEET FOR PAST THREE YEARS OF ABB INDIA:

ABB INDIA
------------------
Standalone - in Rs. Cr.
Balance Sheet ------------------
-
  Dec 20 19-Dec 18-Dec

 
  12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES    

SHAREHOLDER'S FUNDS    

Equity Share
42.38 42.38 42.38
Capital
Total Share
42.38 42.38 42.38
Capital
Reserves and
3,564.00 3,477.73 3,964.94
Surplus

Total Reserves
3,564.00 3,477.73 3,964.94
and Surplus

Total
Shareholders 3,606.38 3,520.11 4,007.32
Funds

NON-CURRENT LIABILITIES    

Long Term
0 7.06 2.03
Borrowings

Other Long Term


50.2 3.56 3.49
Liabilities

Long Term
0 44.97 32.29
Provisions

Total Non-Current
50.2 55.59 37.81
Liabilities
An internship report on ABB INDIA

CURRENT LIABILITIES    
Short Term
0 0 0
Borrowings

Trade Payables 1,720.74 1,901.60 1,874.51

Other Current
1,923.13 2,012.59 2,923.88
Liabilities
Short Term
290.05 210.94 233.38
Provisions
Total Current
3,933.92 4,125.13 5,031.77
Liabilities

Total Capital And


7,590.50 7,700.83 9,076.90
Liabilities

ASSETS    

NON-CURRENT ASSETS    

Tangible Assets 762.98 719.8 871.3

Intangible Assets 19.75 21.89 21.84

Capital Work-In-
74.86 59.48 83.06
Progress
Fixed Assets 857.59 801.17 976.2
Non-Current
0 0 0.09
Investments
Deferred Tax
117.21 110.34 114.96
Assets [Net]

Long Term Loans


9.12 10.51 10.42
And Advances

Other Non-Current
522.94 380.62 450.11
Assets

Total Non-Current
1,506.86 1,302.64 1,551.78
Assets

CURRENT ASSETS    
Current
0.08 0.08 0.08
Investments
Inventories 840.83 861.73 927.85

Trade Receivables 1,694.96 1,947.54 1,686.89

Cash And Cash


2,206.57 1,597.57 1,475.07
Equivalents

Short Term Loans


17.88 366.53 15.84
And Advances

OtherCurrentAssets 1,323.32 1,624.74 3,419.39


An internship report on ABB INDIA

Total Current
6,083.64 6,398.19 7,525.12
Assets
Total Assets 7,590.50 7,700.83 9,076.90
OTHER ADDITIONAL
   
INFORMATION

CONTINGENT LIABILITIES,
   
COMMITMENTS

Contingent
641.5 882.48 889.37
Liabilities

CIF VALUE OF IMPORTS    

Raw Materials 0 0 0

Stores, Spares And


0 0 0
Loose Tools

Trade/Other Goods 0 0 0

Capital Goods 0 0 0

EXPENDITURE IN FOREIGN
   
EXCHANGE

Expenditure In
2,401.95 3,749.80 4,559.00
Foreign Currency

REMITTANCES IN FOREIGN
   
CURRENCIES FOR DIVIDENDS

Dividend
Remittance In - - -
Foreign Currency

EARNINGS IN FOREIGN
   
EXCHANGE
FOB Value Of
- - -
Goods

Other Earnings 949.96 1,468.03 1,634.00

BONUS DETAILS    
Bonus Equity
18.79 18.79 18.79
Share Capital

NON-CURRENT INVESTMENTS    

Non-Current
Investments
- - -
Quoted Market
Value
Non-Current
Investments
- - 0.09
Unquoted Book
Value
An internship report on ABB INDIA

CURRENT INVESTMENTS    

Current
Investments
- - -
Quoted Market
Value
Current
Investments
0.08 0.08 0.08
Unquoted Book
Value

PROFIT AND LOSS ACCOUNT ACCOUNT FOR PAST THREE YEARS OF ABB
INDIA:

Previous
ABB India
Years »
------------------
Standalone
- in Rs. Cr.
Profit & Loss
------------------
account
-
  Dec 20 19-Dec 18-Dec

 
  12 mths 12 mths 12 mths

 
INCOME    
Revenue
From
5,757.17 7,229.00 6,613.36
Operations
[Gross]

Less:
Excise/Sevice
0 0 0
Tax/Other
Levies
An internship report on ABB INDIA

Revenue
From
5,757.17 7,229.00 6,613.36
Operations
[Net]
Other
Operating 63.78 86.06 76.76
Revenues
Total
Operating 5,820.95 7,315.06 6,690.12
Revenues

Other Income 106.87 94.31 84.01

Total
5,927.82 7,409.37 6,774.13
Revenue
EXPENSES    

Cost Of
Materials 3,227.94 4,194.97 3,755.62
Consumed

Purchase Of
456.66 471.02 582.11
Stock-In Trade

Operating And
Direct 164.56 221.88 226.3
Expenses

Changes In
Inventories Of
21.28 -26.73 -50.38
FG,WIP And
Stock-In Trade

Employee
Benefit 568.01 579.62 529.5
Expenses

Finance Costs 16.87 21.36 53.9

Depreciation
And
120.36 90.4 92.76
Amortisation
Expenses

Other
1,106.56 1,343.15 1,189.18
Expenses
Total
5,682.24 6,895.67 6,378.99
Expenses
  20-Dec 19-Dec 18-Dec

 
  12 mths 12 mths 12 mths

 
An internship report on ABB INDIA

Profit/Loss
Before
Exceptional,
245.58 513.7 395.14
ExtraOrdinary
Items And
Tax

Exceptional
58.79 -69.7 0
Items

Profit/Loss
304.37 444 395.14
Before Tax

Tax Expenses-Continued
   
Operations

Current Tax 74.34 130.32 139.65

Deferred Tax 2.22 11.45 1.3

Tax For Earlier


-2.63 0 0
Years

Total Tax
73.93 141.77 140.95
Expenses

Profit/Loss
After Tax And
Before 230.44 302.23 254.19
ExtraOrdinary
Items

Profit/Loss
From
230.44 302.23 254.19
Continuing
Operations

Profit Loss
From
-14.99 1.65 399.1
Discontinuing
Operations

Total Tax
Expenses
-3.77 0.48 142.4
Discontinuing
Operations
An internship report on ABB INDIA

Net Profit Loss


From
-11.22 1.17 256.7
Discontinuing
Operations

Profit/Loss
For The 219.22 303.4 510.89
Period
  20-Dec 19-Dec 18-Dec

 
  12 mths 12 mths 12 mths

 
OTHER ADDITIONAL
   
INFORMATION

EARNINGS PER SHARE    

Basic EPS
10.34 14.32 24.11
(Rs.)
Diluted EPS
10.34 14.32 24.11
(Rs.)
VALUE OF IMPORTED AND
INDIGENIOUS RAW    
MATERIALS

Imported Raw
0 0 0
Materials

Indigenous
0 0 0
Raw Materials

STORES, SPARES AND


   
LOOSE TOOLS

DIVIDEND AND DIVIDEND


   
PERCENTAGE

Equity Share
101.72 101.72 93.24
Dividend

Tax On
0 20.91 19.17
Dividend
Equity
Dividend Rate 250 240 240
(%)
An internship report on ABB INDIA

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