Diversified industrial manufacturer Eaton Corporation has announced a sales target of $500 million ( Rs. 2,250 crore) in India by the end of 2015, which would triple its current revenue in the country. In an Interview with SP’s Aviation team, Eaton Chairman and CEO, Alexander M. Cutler outlines the roadmap in India.

SP’s Aviation (SP’s): Could you tell us about your aerospace business in India and how it is growing?

Alexander M. Cutler (Cutler): Eaton began operations in India in 1999 through the global acquisition of Aeroquip Vickers. We are basically into four aerospace product solutions—hydraulic, pneumatic, fuel and electrical systems. A substantial number of commercial and military aircraft in India are powered by Eaton solutions. With the aviation sector in India and also the region growing fast, we see enormous opportunities here. India will be an important part of our goal generating 30 per cent of our sales from emerging markets. We are excited and bullish about participating in the development of India’s infrastructure including airports. I landed at Terminal 3 of the Indira Gandhi International Airport and must say that they have done a good job and not just because Eaton has provided electrical solutions here.

SP’s: What is your strategy with regard to partnerships—do you partner with original equipment manufacturers (OEMs) and also the end-users such as airlines?

Cutler: Eaton has partnerships with both. There are many airlines which opt for our product solutions knowing our strengths and the OEMs go along with them. Our solutions are on most airlines and as we are known to provide cost-effective solutions, Eaton has a long clientele list. Our systems are on most of the Airbus and Boeing commercial aircraft and also on several of the US and European fighter jets. Our fuel systems on the single-aisle commercial aircraft have brought about 30 per cent fuel efficiency which the airlines recognise.

SP’s: Where do you see the aerospace business coming for you in India?

Cutler: If you look at the passenger growth in India and also in China, both countries will require more aircraft and also improved maintenance infrastructure. At present, many airlines take their aircraft overseas for maintenance, but this is going to change in the next three-four years. Eaton has positioned itself to serve the opening up of the MRO business.

SP’s: In India, the growth is coming from the low-cost carriers (LCCs) who are cost-conscious. How do your solutions address their needs?

Cutler: Not just India, we see the LCC model growing in many regions including the US. Our product solutions focus on two important aspects—reliability and cost-effectiveness. It perfectly makes sense for the LCCs to opt for solutions which gives optimised performance at lower costs. Eaton does that.

SP’s: Could you spell out your expansion plans, mergers and acquisitions (M&As) in the aerospace business in India?

Cutler: Eaton continues to grow both in an organic and inorganic way. We always have some M&As in the pipeline. Importantly, we will expand our presence in India, both on the sales and the research and development fronts. The integrated research and development centre in Kharadi, Pune, will add 200 employees to its engineering and other professional services work.