Honeywell Launches Expansion Spree in India

The company’s Indian workforce is expected to double as the firm taps local engineering talent.

Larry E. Kittelberger, Chief Information Officer and the Senior Vice President, Honeywell International
Larry E. Kittelberger, Chief Information Officer and the Senior Vice President, Honeywell International

Honeywell International, the $30 billion automation company, has decided to establish a research and development facility in Hyderabad and a new 40,000 square foot facility at its Madurai lab campus, as part of consolidating its training operations there. The company currently has a research centre in Bangalore.

Honeywell Chief Information Officer and the Senior Vice President Larry E. Kittelberger said that India is a strategic arm for Honeywell operations. The move to expand to Hyderabad was prompted by the need to tap the large talent pool and the proactive support of the State Government.

The company expects to have its first new building up by the first quarter of next year. In Hyderabad, Honeywell Technology Solutions Limited (HTSL) currently has 4,000 employees in the Bangalore R&D centre and it expected to double the R&D workforce strength in the next five years.

Engineering jobs

"We will hire software, mechanical and electrical engineers in this facility," he added. The company expects a turnover of $156 million and employment to 5,500 people by 2009 in Hyderabad, according to a statement.

Meanwhile Honeywell has launched the Honeywell Technology Solutions Laboratory at the Thiagarajar College of Engineering (TCE) in Madurai.

Kittelberger said the company envisages major expansion in India in the next five years.

Krishna Mikkilineni, managing director of Honeywell’s Indian subsidiary, said the company will recruit another 1,000 engineers and invest $10 million – to $15 million in R&D in Hyderabad. "We are one of the key labs to serve the needs of Honeywell International. We have realized the way to add value is by tapping into the eco-system and the local talent pool," Mikkilineni said.

Honeywell's expansion move comes in the wake of its joint venture with the Tata group terminating after it's parent firm acquired the latter's 41 percent stake earlier this year. Honeywell Asia Pacific, a subsidiary of Honeywell International, bought out the stake from Tata Industries. The transaction is expected to be completed this year. The two partners each had 41 percent stake in Tata Honeywell, with the balance (18 percent) held by financial institutions.

Though the Indian subsidiary's revenue contribution to its parent firm is not significant, it has projected 25 percent growth during the current fiscal.

About the author

Uday Lal Pai, udaylalpai@gmail.com, is a freelance journalist based in India.

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