Bangalore: United Technologies Corp. (UTC), a US firm that makes elevators, fire safety systems, aero engines and helicopters, plans to double its revenues from India to at least $1 billion (Rs4,862 crore) in three years. It expects to earn one-third of this by selling plane engines and helicopters to the military and local firms.
UTC—which owns Otis Elevator Co.; Pratt and Whitney, which makes engines for passenger and military planes; Hamilton Sundstrand Corp., a supplier of systems for aerospace industry, and Sikorsky Aircraft Corp., which makes military and commercial helicopters—sees double-digit growth from emerging countries such as China and India, even as it stares at a slowing business in its home market due to the current economic crisis..
Unaffected: United Technologies’ Louis Chenevert.
“We have not seen a slowdown (in India)...not seen the impact of the credit crisis. I am not saying that we won’t see it, but at this point of time, we are (actually) seeing a momentum,” said president and chief executive officer Louis Chenevert.
UTC employs at least 4,000 people at its India units and a few thousands more through suppliers and contractors. “We are adding more,” Chenevert said without elaborating. The firm sources information technology systems, aero engine and aircraft components from 14 firms that include Hindustan Aeronautics Ltd, HCL Technologies Ltd and QuEST Manufacturing. Tata Advanced Systems Ltd, a unit of the Tata group, makes helicopter cabins for Skiorsky.
Analysts say global firms such as UTC, Lockheed Martin Corp. and Boeing Co. are building India operations for long-term commercial and military contracts. “If you take the Indian defence procurement pipeline, somebody who works now will have a steady revenue stream for the next 25-30 years,” said Ratan Shrivastava, director for aerospace and defence at the India offices of research firm Frost and Sullivan.
UTC also owns 15% stake in Hyderabad-based engineering design services firm Infotech Enterprises Ltd.