Nasdaq-listed TE Connectivity –– provider of connectivity solutions –– sees immense opportunities in the Indian Railways tender to acquire 1,000 diesel locomotives, said a senior company executive.
Talking to Deccan Herald, TE President (Industrial Solutions) Terrence Curtin said that Railways, which is the second largest in the world and largest in Asia holds a lot of opportunities for the company, more so when it is looking forward to the 1,000-diesel locomotives deal through public-private-partnership (PPP) mode.
“We supply components such as the roof-line assembly, jumper cables and components in signalling. Thus the new deal would mean a lot of business for us,” Curtin added.
TE Connectivity's global business is split into three broad segments -automotive ($5.1 billion); broadband connectivity ($3.3 billion); consumer ($1.9 billion) and $3-billion industrial business. In India, the industrial segment is about $100 million strong.
Its India revenues were Rs 1,406 crore in fiscal '12, with more than 4,000 employees including 350 engineers, out of its global workforce of 90,000 employees.
The company’s global R&D is about $700 million and it has 19 design centres worldwide. The company is also a supplier of equipment to Bangalore metro and with cities having population of more than 20 lakh to have metro rail, Curtin expressed optimism in more such contracts. “In every high-speed locomotive, there are TE components worth close to $90,000,” said Curtin. Under the industrial segment, the company designs and manufactures high voltage components, power & signal connectors, power resistors, communication connectors, high performance relays and more.
Announcing the Q1 results of the company in January 2013, TE Connectivity CEO Tom Lynch had said that revenues in their transportation and industrial segments were up low single-digits; the network and consumer segment declined in the quarter.
The company earns 32 per cent of its revenues from America, 19 per cent from Asia (excluding China); 17 per cent from China and 32 per cent from EMEA region. In Q1, revenues were up 4 per cent in the Americas, down 2 per cent in Europe, and down 5 per cent in Asia; within Asia, revenues from China were up about 4 per cent.