Software and sustainability solutions provider Honeywell Automation India aims at 12-14% revenue growth every year going forward on the back of increase in scope for verticals such as pharmaceuticals for automated systems, gas industry in transition from conventional coal to LNG (liquefied natural gas), and sustainable technology solutions.
The company, which had reported a 3% decline in revenue from operations at Rs 2,948 crore in FY22 owing to the impact of Covid-19, slowdown in global economy, and supply chain disruptions, has now seen an improvement in business conditions and is confident of a sustained growth momentum owing to digitisation.
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“We are a very diversified company…we have portfolios in infrastructure, in smart cities, airports, road infrastructure, oil and gas, refining, petrochemicals, minerals, metals, mining power, pharmaceuticals and life sciences. So, If some industries go down, some industries go up, it gives a natural balance for us to sort of sustain,” Ashish Gaikwad, managing director of the company, told Fe in an interaction.
“In India, we look at the GDP growth and we look at the sectors that are growing. Typically, we take a mission for ourselves to grow two times that of GDP. So let’s say, if India’s GDP is growing at 6-6.5%, we would like to grow at 12-14%,” Gaikwad said, adding that the focus in 2023 will be on data analyzing and sustainability solutions.
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In the six months ended September, the company’s revenue rose 11% on year and its order book grew by 16%. The improvement in availability of chipsets and ease in supply chain constraints have also improved the execution of orders by the company.
Besides having a portfolio of products such as sensors, building management system, access controls, fire life safety, the company is actively focusing on sustainable development solutions as the industries focus on reducing their carbon footprints.
Under its technology, materials, and technologies business that constitute 45% of India’s business, Honeywell invents new substances, materials, and molecules as part of sustainability solutions. Post the development stage it commercializes the technology as a licensee.
One such example is its recent announcement on ethanol-to-jet fuel technology, as part of which airlines will be able to reduce their green-house gas emissions by using sustainable aviation fuel, moving away from conventional aviation turbine fuel.
“We are already blending the sustainable aviation fuel (in other countries) and we can fly the airline with such technology very soon in India from borrowing the sustainable fuel. However, the same will take 2-3 years if we want to build infrastructure around it to start the same,” Gaikwad said.
“A large part of what we need (from the point of view of engineering, procurement and construction) is already going to be feasible in India. What is required is the regulation that the aviation ministry or the oil and gas ministry will have to say that every flight that takes off in India will have at least 2% of the blend of SAF to get started and then slowly they can improve it,” he added.
Once implemented, the ethanol-to-jet fuel technology will reduce the crude oil imports of the country, which is at 80% of the country’s requirements and save the foreign exchange.
Apart from the sustainable solutions, the company is bullish on the 5G play and is working on solutions such as wireless charging solutions using solar panel, for enterprises.
