Honeywell looking to strengthen its military aerospace presence in India

New Delhi: With a view to secure a larger share of the Indian defence budget, US-based aircraft equipment manufacturer Honeywell Aerospace is planning to enhance its presence in India by ramping up operations.

Honeywell is reported to be mulling relocation of some of its operations of its military aerospace division to India from its home-base in the US. Media reports suggest that Honeywell plans to increase the headcount by 20 per cent to 6,000 over the next four years. Most of the resources would be located at the company's design and development centres in Bangalore and Hyderabad.

The Economic Times, in a report, quoted Honeywell president for defence and space, Ed Wheeler as saying that in order to remain competitive Honeywell would have to move to developing countries. He said the company would increase its presence in India in the field of military aerospace, employing at least a thousand engineers at Honeywell's research and development centres in India.

Honeywell is looking at Indian Air Force's multi-billion dollar order of re-engineering its F125 engine, which propels the IAF's Jaguar fighters. The order has the potential for re-adaptation of 275 F125 engines for the Jaguar fighters. The IAF is yet to kick into motion the process of awarding the contract.

Honeywell makes the TPE 331 engines only in India, which are manufactured under licence by Indian public sector aviation major Hindustan Aeronautics (HAL). The TPE 331 engines power turbo-prop aircraft.  Around 15 per cent of Honeywell's manufacturing activities are outsourced. Honeywell also has a significant presence in commercial aviation in China.

Amongst other plans for India, Honeywell plans to make navigational radio systems here, though that would only be after the government decided to rethink the existing foreign direct investment norms, as Honeywell does not se itself as a minority equity partner in a joint venture.