Technology firm Honeywell on Wednesday announced setting up of a new segment under brand name Impact which will sell low-cost solutions to small and medium enterprises (SMEs) in small towns and cities.
Honeywell India President Akshay Bellare said the new brand is expected to contribute over 10 per cent of overall revenue of Honeywell India in the next two years.
“We have an aspiration of this business going to be a very significant part of our overall Honeywell India business. In the next couple of years I am looking at 10 per cent or higher revenues coming from this business initiative.
“I see it even going beyond this. I expect it to be substantially higher than that (10 per cent) in the next five years,” Bellare said while unveiling the new brand.
Honeywell has been selling products to medium and large business organisations, including automation and other industrial technology solutions.
Under the brand Impact, Honeywell will initially sell products like surveillance cameras, fire safety alarms and air conditioner controllers.
“The mid-segment business is growing very fast. We need to focus on mid-segment. It was a realisation that unless we focus on it with a completely different approach, we will not be able to design and deliver products for this segment and we will always remain in the upper, mid or premium segment. There is a conscious effort for us to approach small and mid segments with Impact,” Bellare said.
Honeywell will design, develop and manufacture products for Impact in India and also look at exporting to Middle East and other regions.
“We need to first create demand in the local market and then start exporting it to other countries. We will start serving some markets in a very limited way,” Honeywell India Director for Strategy and Marketing Piyush Arora said.