Mr. Sameer Nagpal, VP - Strategy & Business Creation, Ingersoll Rand India Ltd. is responsible for formulating entry and growth strategies for expanding Ingersoll Rand's footprint in India. He is also responsible for identifying key vertical markets and driving Ingersoll Rand's growth in them through customized products and solutions development. Ingersoll-Rand (India) Ltd. is based out of 18 locations in the country. In India, Ingersoll Rand is working on three key areas – "Productivity" by leveraging its local manufacturing operations in Ahmedabad and Sahibabad, "Innovation" through its engineering R&D centers in Bangalore and Chennai and "Growth" through the expanded footprint it has in the country. Ingersoll-Rand Plc and its consolidated subsidiaries are a diversified, global group that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, and increase industrial productivity and efficiency. In an exclusive interaction with Hemant P. Maradia of IIFL, Mr. Nagpal says, "We have a short-term target of more than doubling our turnover in India to over US$500mn in the next three years." What will your agenda be over the next few weeks and months? India is a key market for Ingersoll Rand. The agenda for next few months will be to comprehensively map the market in various business segments and identify the areas of biggest opportunities for growth for Ingersoll Rand in India. Which are going to be your areas of focus? My focus will be identifying opportunities for growth in the markets that we serve, and look at ways to leverage our product portfolio through India centric development initiatives. For this, we will leverage our Global Engineering Centers in Bangalore and Chennai which have competencies which may not be available to other players in India. What strategies are you adopting to drive future growth at Ingersoll-Rand India? I believe that Ingersoll Rand is currently sub penetrated in the markets in which it operates, given the depth and breadth of product and the solutions we have globally. Short term growth will come from market penetration by customizing our products to suit Indian requirements, leveraging cross selling opportunities across our businesses, developing channel to extend our reach and footprint in the country among others. In the mid to long term, our strategy will go beyond leading in the sectors where we currently operate. We are already expanding into new businesses from our global portfolio and high on our priority are Cold Chain, Residential Sector and Electric Vehicles. What is the addressable market size for your products in India? What is the growth rate in each segment? The addressable market size for Heating Ventilating and Air-conditioning (HVAC) products is US$3bn.In the Industrial Technologies space the market size for Air Solutions is US$270mn and US$86mn for Industrial Tools. The market size for Security Technologies is US$1bn. What kind of entry barriers exist in your industry as far as India is concerned? All our businesses are technology and knowledge driven businesses that require high customer engagement and after-sales service. They act as barriers to entry in these businesses. Who are your major competitors in India? Ingersoll-Rand plc and its consolidated subsidiaries are a diversified, global group that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties, and increase industrial productivity and efficiency. Any corporate who plays in these areas could be considered our competitor. However, since there are no corporate entities that play in all the diverse markets that we cover, there aren't any direct competitors for Ingersoll Rand as a whole. We are world leaders in creating and sustaining safe, comfortable and efficient environments and create competitive advantage by combining strengths to serve customers better. What is your market share in various segments? Globally all our strategic brands are No.1 or No.2 in their respective markets. We are leading players in most of our businesses in India too. How does Ingersoll-Rand view India as a market? What are the future plans for this country? Ingersoll Rand sees India as great potential market in all its business segments. In the coming few years the country will be contributing in terms of growth, design and manufacturing for this part of the world. Ingersoll Rand is currently evaluating strategies for product re-engineering and design for Security, Food, Commercial and Hospitality Industries. We have a short term target of more than doubling our turnover to over half a billion dollars (US$500mn) in the next three years. Among the three segments, which is the largest in terms of revenue contribution? Today our biggest business segment is the Industrial Technologies business followed by Climate Solutions and Security technologies. What kind of trends you see in each of the three segments? What is the outlook for each of the segments? With a robust GDP growth and good traction in industrial and construction sectors besides increasing urbanization, all our businesses are poised for aggressive growth in the Indian market. What is the business focus for Thermo King India and its proposed JV with TVS? Thermo King is a world leader in transport temperature control systems for a variety of mobile applications, including trailers, truck bodies, buses, shipboard containers and railway cars, which serve passenger comfort as well as the supply chain infrastructure for food and perishable goods. Thermo King India Pvt. Ltd., a 100% subsidiary of Ingersoll Rand Plc, has appointed T V Sundram Iyengar & Sons Ltd. (TVS & Sons Ltd.), one of India's largest automotive distribution and servicing companies as a partner for its climate control products under its Thermo King brand. This appointment will strengthen Ingersoll Rand's Climate Control Product and Service Offering in India. The appointment of TVS as our partner is another major step towards augmenting our sales and service enhancement strategy. The presence of TVS service network across the key states in India will allow customers to experience better engagement and improved servicing. Comfort travel using air conditioning and refrigerated transport to avoid food losses is becoming imperative for the Indian market. This relationship allows us both to expand and create new markets in the domain of supply chain infrastructure and comfortable commuter transportation. As per the agreement, TVS will be responsible for distributing and servicing over 20 current models of Thermo King products, such as bus air-conditioning units, truck refrigeration units, trailer refrigeration units and their spare parts. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. --- On Tue, 8/17/10, Sanket Shrikanth <sanketshrikanth@gmail.com> wrote:
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