Ingersoll-Rand PLC (>> Ingersoll-Rand PLC) expects its Indian unit's revenue to grow 15%-20% annually over the next several years, driven by the introduction of its consumer air-conditioning brand Trane and rising demand for its industrial products, Chairman Michael Lamach said Wednesday.
In 2011, Ingersoll-Rand India Ltd. (500210.BY) posted revenue of $250 million.
The Ireland-based company that sells brands such as the American Standard, Thermo King and Schlage gets two-thirds of its revenues from the U.S. and about 12% from India.
In an analyst conference on March 12, Lamach said 40% of the company's businesses had yet to rebound from the severe declines that occurred during the U.S. economic recession. Many of these businesses are dependent on residential and commercial construction, which is recovering slower than other business sectors in the U.S.
At a press conference Wednesday, Lamach said in 2011, around two-thirds of Ingersoll-Rand's revenue growth came in from emerging economies such as China, India and South American countries.
Its global revenue increased 6% to $14.8 billion in 2011.
He said the company's strategy is to localize manufacturing in emerging economies to lower costs and keep product prices competitive.
In India, Lamach said the company had announced a $100 million investment three years back. "We are continuing that investment program. Once all of it is invested, we will suss out what to do next."
Ingersoll-Rand India Chairman Venkatesh Valluri said the company is investing $22 million in building the first phase of a plant in the southern city of Chennai. "The plant will be ready (for operations) in 2013."
-By Prasenjit Bhattacharya, Dow Jones Newswires; 91-11-4356-3358; email@example.com