Honeywell sees India business growing 15 percent a year

By Sumeet Chatterjee

MUMBAI (BestGrowthStock) – Honeywell International expects sales in India to grow at about 15 percent annually over the next five years, as a surging economy drives demand for industrial automation as well as aerospace and security systems, its China and India chief said on Saturday.

The diversified U.S. manufacturer, the world’s largest maker of cockpit electronics, expects India sales this year to rise to about $600 million, from $500 million last year, CEO David Cote told Reuters in an interview.

Growth in India adds to rising sales in overseas markets, which will account for half of Honeywell’s overall business this year.

“When it comes to new markets, it used to be 40 percent of our sales outside the U.S. This year it will be 50 percent,” Cote said on the sidelines of an event in Mumbai, where he was part of a business delegation accompanying U.S. President Barack Obama.

Last month, Honeywell posted an 18 percent decline in third-quarter net profit but still exceeded Wall Street expectations, and said sales in 2011 should rise by 5 percent or more.

Honeywell, which is based in Morris Township, New Jersey and also makes systems for controlling large buildings, employs about 11,000 staff in India, compared with 9,000 in China.

India’s economy is on track to grow at 8.5 percent in the current fiscal year, which is driving demand for everything from airplanes to power plants and modern office buildings and shopping malls.

“We are pretty confident about growth in India going forward because we see GDP growth being good,” said Shane Tedjarati, CEO of China and India for Honeywell.

Tedjarati said in September that he expects China sales to rise at about 15-20 percent a year over the next five years.

(Reporting by Sumeet Chatterjee; Writing by Tony Munroe; Editing by Susan Fenton)

Honeywell sees India business growing 15 percent a year