Bangalore: Honeywell International Inc. expects business at its India unit to rise at double the pace of its growth in developed markets, its top executive said.
Good prospects: Honeywell chief executive officer David Cote expects revenues from India to be around $600 million in 2009.
US aerospace and technology firm Honeywell’s non-US operations contributed to 50% of its revenue of $37 billion (Rs1.8 trillion) in 2008, chairman and chief executive David Cote told reporters on Thursday. In 2003, sales from outside the US contributed to 40% of overall revenues.
“India has played a major role. We would not have been able to do that if we had not established the kind of capability we have here,” Cote said. He was in Bangalore to inaugurate Honeywell’s largest research centre globally.
The firm has expanded its India workforce, which includes software professionals and aerospace researchers, to 11,000 from around 500 some six years ago.
Honeywell, which operates in four business segments—aerospace, automation and control solutions, transportation systems and speciality materials—expects revenue from India to be $600 million in 2009. Cote did not disclose last year’s numbers.
“Right now, the company is only a few segments in India. Aerospace and defence is a big segment they are focusing on,” said Dhiraj Mathur, India leader, aerospace practice, at audit firm and consultancy PricewaterhouseCoopers Pvt. Ltd. “They are very bullish on India.”
Honeywell has bid to supply new engines to power 125 Jaguar fighter planes of the Indian Air Force. Rolls- Royce Plc., whose engines power the existing fleet, is the other contender.
Cote also said he was unclear on the impact of US President Barack Obama’s recent proposals to cut tax incentives for US companies that moved jobs overseas.
“Anything that seems of protectionism and anything that stops the globalization activity will be harmful to (the) status of living around the world,” he said. “It is not just in countries that you think are impacting, but it hurts yourself.”