Chennai: Diversified US manufacturer United Technologies Corp., maker of Carrier air conditioners and Otis elevators, on Friday announced the acquisition of two Chennai-based companies – building management business Sauter Race Technologies Pvt. Ltd and Agnice Fire Protection Ltd. – to support a five-fold jump in India revenue from the current $500 million to $2.5 billion by 2015.
The Hartford, Connecticut-based company’s India commercial business head Zubin Irani told Mint ahead of the Chennai press conference that UTC was taking a majority stake in both companies but refused to give details on the size of the deal and the stake percentage
The depreciation of the rupee makes it cheaper for American companies to acquire Indian units. The rupee has been slipping amid increasing likelihood of sluggish economic growth in India reported to be 6.9% in the second quarter of 2011-12, lower than the gross domestic product growth average of 8.6% last year. Rising costs, higher interest rates and the debt crisis in Europe that is hurting Indian exporters dependent on the continent have roiled the domestic economy.
Sauter Race was created in 2006 when Sauter AG of Switzerland picked up a 26% stake in the 1992-established Race Technologies. The Indo-Swiss joint venture deals in heating, ventilation and air conditioning (HVAC) systems and security controls for buildings, both of which together form a big chunk of the Indian building management systems market.
The Indian intelligent building management systems (IBMS) market is valued at $621 million as on 2011, according to an online report by US consultancy Markets & Markets. The market is expected to reach $1,891 million by 2016 aided by a compounded annual growth rate (CAGR) of 25%.
Agnice Fire Protection is a 15-year-old company that offers gas-based and water-based fire suppression services to large commercial and residential buildings, oil and gas industry and power plants, and also provides building security solutions, such as electronic access control and closed-circuit camera television.
UTC’s India arm has over 80 sales and service offices, four factories and three R&D (research and development) centres, over 4,000 direct employees, and 5,000 indirect employees in India.