United Technologies Corporation, the US diversified manufacturing major, has set itself a target of $2.5 billion in revenues from India by 2015, its chairman said on Tuesday.
The company generated about $500 million in sales from India in 2009 — that is around 1% of its total revenue. “We expect our India revenues to grow by 20% this year. By 2015, India should rank among the top ten markets for us generating around 3% of the company’s revenue,” said Louis R Chenevert, chairman and chief executive officer, United Technologies Corporation (UTC).
UTC — the $52.9 billion company is headquartered in Hartford, Connecticut. Its products include Carrier heating and air conditioning, aerospace systems and industrial products, Otis elevators and escalators, aircraft engines, Sikorsky helicopters and fire and security systems.
Chenevert, who became chairman in January, spoke to media at the company’s newly opened office in New Delhi. He was part of the high-powered business delegation accompanying US President Barack Obama on his India trip.
“We are very optimistic about India and the future prospects in the country,” he said. In an earlier interview, Chenevert had said that India offered the same opportunities that China offered ten years ago. Its revenues in China touched $3 billion last year.
“Fact is the numbers in India are very compelling as far as the growing middle class, the largest work force in the world for a nation. And they all want to adopt modern life…so its primetime for us,” he said.
UTC’s two best selling products in India are Otis elevators and Carrier air conditioners. For the former, the company has set a target of $1 billion in sales by 2015. It made around $800 million selling air conditioners in India last year.
“We are the market leader in the larger chillers segment where we sell one out every three chillers. As far as the residential segment is concerned, we figure in the top five,” said Zubin Irani, senior managing director, UTC India.
“You can only win in this market if you localize as much as you can. You have very qualified workforce here to deal with challenges,” Chenevert said. The company employs nearly five thousand people in India and has three factories for Otis, Carrier and Hamilton Sundstrand (producing technologically advanced aerospace and industrial products).
UTC is also in talks with two Indian companies, including the state-run Hindustan Aeronautics Ltd, to jointly develop military products. Sikorsky has sold five VIP helicopters including two to Reliance Industries.