Honeywell International Inc. (HON:US), whose products range from auto parts to fire alarms, expects at least half of growth over the next five years to come from emerging markets (HON:US) because of urbanization and expanding energy industries.
“Developing more than 50 percent of our growth from high- growth regions is reasonable,” Shane Tedjarati, head of global high-growth regions, said in an interview in Shanghai today. “An increasing amount of the world’s industrial output and GDP and growth are coming from these places.”
In China, the company expects “good double-digit growth” for the next five years, Tedjarati said, as more people move to cities and buy more carpets, cars and security systems. Expansion in China and India has helped Morris Township, New Jersey-based Honeywell boost the share of sales it gets from overseas to 54 percent from 41 percent in 2002, according to its annual report.
The oil and gas sector will play a leading role in Honeywell’s expansion in emerging markets, Tedjarati said. The company is seeking to expand in regions including Indonesia, the Middle East, Russia, Brazil and energy-rich parts of Africa, he said. Honeywell’s energy products include systems for refining and processing crude oil.
Honeywell has invested $600 million in China, where it employs more than 11,000 people, according to its website. Tedjarati was the company’s China head before being promoted to the global emerging-markets role in January.
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