United Technologies Corporation (UTC), with revenues of Rs 274 lakh crore ($58.7 billion) in 2008 and having under its umbrella, iconic brands like Otis, Carrier, Sikorsky, Pratt & Whitney, Hamilton Sundstrand and UTC Power, is stepping up initiatives to grow its business in India.
UTC president & chief executive officer Louis R Chenevert, who is set to take over as chairman in less than 50 days, spoke to Hindustan Times on the group’s plans for India. Excerpts:
On opportunities in India
India has huge potential for UTC. You have strong inflow of FDI and the GDP outlook for 2009 is promising despite the downturn. This economy has stablised and is growing. We like the prospects in education and energy efficiency.
On Tuesday I met your prime minister and we discussed measures on energy efficiency. Urbanisation would drive growth here and we will help in developing energy efficient buildings.
I find great opportunity for Otis elevators, Carrier heating and air-conditioning systems and aero-space products in India.
Plans for India
We already have 4,000 people in India and we will double the number in five years including our joint ventures and partnerships. From $100 million annual revenue in India we are now doing $500 million. Our target is to grow to $3 billion. We already have three factories in India and have just signed a joint venture with the Tatas for manufacture aerospace components for Sikorsky in India.
We will have long-term relationship with the Tatas. All that goes into the making of the cabins would be produced here. We have sold five S76 Sikorsky helicopters in India. We want to grab a large share of Indian market which will need 800 helicopters in 15 years.
On R&D and charity
Our growth is based on research and development. Last year we spent $3.6 billion (Rs 16,666 crore) on R&D. We have donated $100,000 to the NGO United Way of India, which will support maths, science and technology education of school children.
On the future
I am looking for long term in India. We took off here last decade. We source 75 per cent of our components from vendors, and will source more from India. The biggest challenge would be to grow as fast as possible and enhance local supplies.