Heavy electrical equipment company signs digital transformation agreement with Steel Authority of India Ltd
The stock is up by 55 per cent in 2 years and has given multibagger returns of over 700 per cent in 5 years.
ABB India Ltd and Steel Authority of India Limited (SAIL) have entered into a Memorandum of Understanding (MoU) for the digital transformation of the Rourkela Steel Plant in Odisha, India. This collaboration aims to significantly improve the productivity and efficiency of operations by developing digital twins of the existing blast furnaces and steel melt shop areas. Data-driven models will be utilised to identify opportunities for optimising both ironmaking and steelmaking processes, aligning with the growing emphasis on sustainability within the steel industry. This strategic partnership addresses critical industry challenges such as stricter environmental regulations and the need to reduce operational costs, ensuring competitive advantages in a dynamic market.
The Rourkela Steel Plant, which produced 4.08 million tons of saleable steel products in FY 2024-25, plans to substantially increase its output to approximately 9 million tons by 2030 to meet escalating market demands. To achieve this ambitious growth and attain the highest levels of operational efficiency and sustainability, the plant will leverage ABB's extensive expertise in automation and digitalisation. This includes the application of mathematical and data-based models to optimise processes in both ironmaking and steelmaking, with the ultimate goal of providing actionable insights and enabling data-driven decisions for optimal operations, fostering a more sustainable and cost-effective future for steel production.
India's steel industry is experiencing robust growth, with domestic demand projected to increase by 9-10 per cent in FY25 (ICRA) and a long-term annual growth expected to range between 5 per cent to 7.3 per cent (Deloitte). As the industry modernises with advanced steel mills and upgrades for enhanced energy efficiency, technology plays a pivotal role in driving sustainability and productivity. This year marks ABB's 75th anniversary in India, a testament to its long-standing commitment to delivering electrification, automation, and digital solutions across vital industries such as steel, cement, mining, and energy. As a trusted partner to the metals sector, ABB remains dedicated to supporting India's industrial transformation by optimising production, enhancing sustainability, and facilitating the transition towards autonomous operations and a circular economy.
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About the Company
ABB India Ltd is a global technology leader in electrification and automation, enabling a more sustainable and resource-efficient future. By connecting its engineering and digitalisation expertise, ABB helps industries run at high performance, while becoming more efficient, productive and sustainable so they outperform. At ABB, we call this ‘Engineered to Outrun’. The company has over 140 years of history and around 110,000 employees worldwide. ABB’s shares are listed on the SIX Swiss Exchange (ABBN) and Nasdaq Stockholm (ABB).
On Thursday, shares of ABB India Ltd gained 0.72 per cent to Rs 5,923.60 per share from its previous closing of Rs 5,886.95 per share. The stock’s 52-week high is Rs 9,200 per share and its 52-week low is Rs 4,590.05. The stock is up by 55 per cent in 2 years and has given multibagger returns of over 700 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.