Drones and air mobility next big bets: Honeywell India President Ashish Modi

Aerospace major Honeywell Technology Solutions is betting big on the growing drone sector in the country with its state-of-the-art unmanned aerial vehicles design and testing facility at Madurai getting operational in the next quarter, Honeywell India President Ashish Modi told DH in an exclusive interaction. This lab, which is part of Honeywell’s existing Madurai facility spread across 131,000 sq ft, will be an enclosed area to test flight navigation and management systems.

The company has so far invested about $125 million in establishing aero labs across Bengaluru, Hyderabad, Madurai and Gurugram. 

In addition to drones, urban air mobility (UAM) is another key area of interest for the company, Modi said, though it is too soon to evaluate market opportunities available in India for this segment. The company also plans significant investments in specific domains of electric propulsion and touch-based next-generation control systems.

The $35 billion global company generates $1 billion (about 3 per cent) from India. Its $14 billion global aerospace business mainly builds avionics (cockpit and cabin electronic systems), wireless connectivity systems, and other mechanical components for commercial and defence aircraft. A whopping 60-70 per cent of avionics development is happening out of India, Modi revealed, adding that the company aims to double its India business in the next 5 years.

However, India's contribution to overall aerospace manufacturing is very small, Modi said. “India is doing well in taking steps to bring non-complicated technologies, the question is about the engine (manufacturing) and bringing that is critical. It is not only about bringing in the technology but also the capability to be able to handle engines. It is a 30-40-year game that the country has to play,” Modi underscored. 

“What India really needs is a lot of product development capability, not a back office or engineering outsourcing,” Modi further stressed. “Original product design does not happen here and that's where India has to graduate,” he added.

Over 60 per cent of Honeywell’s research and development spend goes towards sustainable solutions. “Sustainability is not free,” said Modi urging the government to support via the Production Linked Incentive, to push the sustainability challenge. 

Honeywell’s other businesses in India include performance materials and technologies ($10 billion),  building technologies, warehousing and supply chains and safety and productivity solutions ($11 billion).

"A lot of the macro trends that are governing the growth in India align very well with our portfolio whether it is aviation and defence, energy transition, advanced manufacturing or warehouse automation. We believe India is poised to grow and we should grow with it", Modi said.