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expect to see continued growth in India across all of our core businesses during this period. We are
targeting to have sales of $1 billion (about Rs 5,000 crore) in India by 2015.
Investment climate in India has been subdued in recent times. Infrastructure and construction projects
have been deferred or are stuck. How is this impacting Emerson's business in India? Please share
revenue and profit performance for the company's India operations in FY 2012. What have been the
challenges to growth in India?
We did well in fiscal year 2011 with sales of approximately $700 million in India (about Rs 3500 crore).
We are targeting to reach $1 billion in sales in India by 2015. Our focus continues to be on major sectors
like oil and gas and power generation, all of which are growing. While growth may have slowed down a
bit this year, nothing has been cancelled. It has only been deferred. It is also important to note that
overall trends show growth in infrastructure and that metals, oil and gas and power as sectors will do
very well in the future.
Emerson recognizes that infrastructure development is the driving force behind economic growth in
India. Better infrastructure will lower business costs in the country and enhance GDP growth. We have a
lot of experience helping emerging markets improve their infrastructure.
What are Emerson's expansion plans in India? What investment does the company plan to make in FY
2013 (calendar year 2012) and in which sectors? Is Emerson looking at developing India as an export
center for its products?
India is one of Emerson's top emerging markets and is already the second largest market in Asia-Pacific
for us. Presently, 35 percent of Emerson is global sales are from emerging markets. We expect this to
reach 45 percent in 2015. Our investments are based on a model of growth from emerging markets
customers and we base our India investments on this model. Emerson has made investments in India of
about $750 million to 800 million (Rs. 3,500-Rs 4,000 crore) in the last three to four years across all
business units. One example is our Emerson Process Management investment in Chennai when we
acquired Fisher Sanmar.
Emerson in India has invested significantly to serve the local market and over 90 percent of what we sell
in India is domestically produced. We are also exporting some products made in India to the Middle East
and other parts of Asia. We view India not as a low-cost market but as a best-cost market.
Our focus in India is on manufacturing best-in-class engineering products. For example, some of our
industrial valves and process valves being used in the oil and gas industries in the Middle East where
quality is absolutely vital from a safety standpoint are made in India. We also export compressors for the
air conditioning and refrigeration industries and alternators. We have built significant global engineering
capabilities in India. So, for example, wherever Emerson is working on a refinery project, our India
engineers are usually involved from a project engineering standpoint.
In the next four years Emerson is looking at $5-6 billion worth of acquisitions which is higher than the
initial target ($4-5 billion). Can you share the reason for the hike in target? Are you looking at
acquisitions in India and in which sectors? By when do you propose to close the acquisitions in India?
We have made quite a few acquisitions in India in the recent past. We are always open to considering
acquisitions that are aligned to our business strategy. India is obviously one of our target markets. We
do not have any announcements at this time.