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Emerson plans to focus on three growth initiatives (portfolio management, strategic investments and
emerging markets) to achieve sales growth in 2011-2015. How is this strategy being implemented in
relation to and in India?
In terms of portfolio management, it means we are repositioning our portfolio of businesses into higher
growth and more profitable markets. We will be pursuing acquisitions globally that align with our valuecreation
strategy. We will continue to make strategic investments in innovation and marketing for our
core businesses (process management, network power, industrial automation, and climate
technologies). Obviously India is one of our emerging markets and we will continue to invest in this
market because we see more potential for growth.
What are Emerson's fundraising plans to support its ongoing and future projects in India? Is Emerson
India planning to raise funds from Indian markets from the debt or equity route? Please share details.
We do not comment publicly on the details of our specific financing arrangements, but I can tell you we
had another solid performance in cash flow from operations in fiscal 2011 at $3.2 billion. Generating
strong cash flow continues to be one of our highest priorities. In fact, Emerson generated nearly $16
billion of operating cash flow during the past five years. A strong cash position allows us to invest in
growth programs, fund acquisitions the types of activities we have been doing in India and will continue
to do in the future as well as provide consistent, long-term value returns for shareholders.
How much does India contribute to Emerson's total consolidated revenue?
Global sales in fiscal 2011 were $24.2 billion and India's contribution to this was $700 million.
Will you be able to share details on proposed investment by Emerson in India?
Emerson will be targeting India-specific investment of $35-40 million (Rs 175-200 crore) annually over
the next five years. We invest as we see good opportunities. We make investments to enable both
organic and inorganic growth and we evaluate these investment opportunities for the business impact
they can make on Emerson as a whole.
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