* Customers holding back new orders - ABB India head
* ABB India head says parent co not to raise stake
* India cbank raised interest rates 12 times in 18 months
(adds quotes, details)
By Anurag Kotoky
NEW DELHI, Sept 19 India's ABB Ltd , a
unit of Swiss engineering group ABB , has seen its
margins come under pressure as customers hold back spending, its
managing director said on Monday.
Firms across India have put growth plans on hold due to
increased borrowing costs and insecurity over slowing economic
growth that could fall below 8 percent this year.
India's central bank has raised interest rates 12 times over
18 months to rein in stubbornly high inflation, and more
increases are expected.
"Clearly, we do see many of our customers holding back in
terms of new business," Bazmi Husain, managing director of ABB
India, told reporters.
"Margins are certainly under pressure."
He also said the parent company, ABB , had no plans
to increase its 75 percent stake in the unit.
ABB, which competes with German conglomerate Siemens AG
(SIEGn.DE) and France's Schneider , will see emerging
markets contribute 55 to 60 percent of revenue in five years,
global Chief Executive Joseph Hogan said.
The Reserve Bank of India reaffirmed its anti-inflationary
stance on Friday, despite growth fears after the country's
domestic demand driven economy grew 7.7 percent in the
April-June period, its weakest pace in six quarters.
ABB's Indian unit, which makes power equipment and provides
automation, reported flat net profit for the June quarter with a
17 percent growth in sales, and said its order book would ensure
"steady" revenue generation in the near term.
ABB employs 10,000 workers in India and runs 14 plants
across seven locations.
Its shares were down just over 1 percent at 824 rupees
($17.43) at 2:15 p.m. (0845 GMT), in a Mumbai market down 1.1
percent on global concerns.
($1 = 47.265 Indian Rupees)
(Writing by Henry Foy; editing by Ranjit Gangadharan)