New Delhi: Diversified manufacturer Eaton Corp expects its India sales to treble to $500 million by 2015, aided by a strong domestic market and steady economic growth, its chief executive said on Monday.
The company will also enter the power distribution market in India in the next eight months, for which it will set up a new facility, Alexander Cutler, who is visiting the Indian capital city, told reporters.
“India will be an important part of our goal of generating 30% of our sales from emerging markets...India is critical to our growth,” Cutler said.
The diversified industrial firm, which has been on an aggressive acquisition spree in the past year, is also looking at buying Indian companies, Cutler said, without elaborating on potential targets, or a timeline.
Eaton is the latest in a series of foreign companies betting on a bullish outlook for Asia’s third-largest economy, which is growing at over 8.5%. With the government focusing more on infrastructure projects, India presents a strong growth opportunity for global manufacturers.
“We are excited about participating in the development of India’s infrastructure and in its manufacturing, transportation and power industries,” Cutler said.
India plans to spend $1.5 trillion in the 10 years to 2017 to revamp its creaking infrastructure, seen as a brake on the country’s economic growth.
Eaton will also expand its research and development center in India, and will add 200 employees to its engineering and other professional services.
Eaton, which makes power systems for data centers, hydraulics used in machinery and components for cars and trucks, is one of many global manufacturers to perform beyond Wall Street expectations recently amid a rebounding industrial economy and strong demand from emerging markets like China.
General Electric Co , which makes goods ranging from jet engines to medical diagnostic equipment, also expects its revenue in India to rise more than 30% this year, its chief executive for the country told Reuters last week.