High-tech defence manufacturing, sustainability and climate change are expected to take centre-stage during Prime Minister Narendra Modi’s visit to the United States, believes Honeywell’s new Indian-origin CEO Vimal Kapur.

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Modi will be on a state visit to the US from June 21 to June 24 and will discuss expansion of strategic technology partnership and defence industrial cooperation between the two nations under the US-India initiative on Critical and Emerging Technology (iCET) announced in May 2022 by Modi and President Joe Biden.

Expressing optimism about the visit, Kapur stated that everyone anticipates it will elevate the bilateral ties between India and the US.

He emphasised the potential for collaboration in the fields of computing and cybersecurity, identifying them as areas where the US and India can work together to foster growth. He also highlighted the significance of developing policies on climate change, underscoring its importance as a major area of focus for both countries.

Kapur stressed that defence should be among the two top priority areas in US-India collaboration and noted that Honeywell's portfolio is perfect fit for where India wants to go.

"High tech manufacturing in defence remains an area of mutual cooperation. We at Honeywell have interests in that," he said.

Focus areas for Honeywell

As the new CEO of the company, Kapur outlined three significant themes that will be central to Honeywell's focus: energy transition, air travel, and automation. And they stick to their commitment of 4-7 percent organic growth and a similar margin expansion, leading to double digit growth every year that would further compound the value addition.

He mentioned the company's intention to streamline its business portfolio by pruning approximately 10% of its assets that do not align with these future themes. However, any pruning or divestment decisions will be made based on achieving the right financial returns, with no rush to divest.

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While simplification is a priority for Honeywell, the timing of such actions will be determined by value creation for investors. Kapur also acknowledged the geopolitical risks involved, expressing hope that the world will not present any more surprises.

With regard to climate change and sustainability, Honeywell's CEO emphasised the company's commitment to decarbonising sectors. Addressing climate change is a priority for Honeywell, and they are exploring avenues such as carbon capture, hydrogen, and sustainable jet fuel to enhance their sustainability efforts.

(Edited by : Pradeep John)

First Published:Jun 12, 2023 8:13 PM IST