The global conglomerate targets mid-segment B2B clients in Tier-1 and Tier-2 cities of India with its localized easy-to-install and –use products and services portfolio
BY CHOKKAPAN S (CHOCK@IMAWS.ORG)
An American multinational technology company has come to the rescue of Indian Micro, Small and Medium Enterprises (MSMEs) that strive for high productivity, efficient cost control, zero revenue leakage, better quality, and impeccable compliance. More surprisingly, the new set of business solutions – products and services – have been developed locally to solve the unique challenges faced by mid-segment customers in India.
THE MID-SEGMENT IMPACT
Honeywell is the conglomerate under discussion. And, Impact is its brand of products and solutions, created to cater to the Indian mid-segment businesses. The new launch is part of the company’s global strategy for emerging markets, customised to suit the unique requirements of local markets. In China, it recently launched a similar initiative called, Huosheng by Honeywell. “Impact by Honeywell brings the weight of Honeywell’s technology capabilities to offer world-class, affordable, easy-to-install and easy-to-use products and digital solutions that are geared to solve the problems of mid-segment customers,” announced Dr Akshay Bellare, President, Honeywell India, at the launch event.
The World Economic Forum projects middle-income households in India to almost double in this decade. This would present small and medium enterprises (SMEs) a great opportunity to serve the burgeoning demands of the bourgeois. In addition to that, the Centre’s ‘AatmaNirbhar Bharat Abhiyaan’ is expected to give a boost to the SME sector in India.
“In the business-to-business context, this segment represents a large customer base spread within and beyond Tier-1 and Tier-2 cities, and a significant opportunity for Honeywell in the end markets that it serves,” Dr Bellare justified the company’s decision. He didn’t fail to point out that the factors that are driving growth in this segment. These include several lifestyle aspirations, such as affordable housing, quick-service restaurants (QSRs), and improved healthcare and hospitality, and the resultant growth in manufacturing, warehousing and logistics, and infrastructure and construction.
SMART, SIMPLE AND AFFORDABLE
According to Dr Bellare, Honeywell sees tremendous potential for adoption of automation, digitalization, and smart products and solutions by SME or mid-segment customers. “SMEs accounts for 45 per cent of industrial output and 40 per cent of the total exports in India. It generates employment for 60 million people and creates 1.3 million jobs every year. Our localisation strategy to cater to this segment will accelerate sustainable growth for Honeywell in India,” he said.
The company has, apparently, assembled a new team with an entrepreneurial, start-up culture at a new office in Pune. In a relatively short span of time, Impact by Honeywell is said to have expanded its customer base and product portfolio.
Impact by Honeywell’s portfolio includes a range of affordable, simple and connected solutions that go into buildings and focus on energy management, fire safety, security and surveillance, and workforce management. Among the diverse portfolio is one innovative product: the Universal AC Controller. “This simple, yet powerful device saves up to 30 per cent of energy bills by reducing wastage and unwanted usage of air conditioners. This battery-operated device works with most AC models and is a must have product for commercial and residential buildings,” Jasmeet Bhatia, who heads the buildings technologies vertical for Impact by Honeywell, observed.
DIVERSE DOMAINS
The new portfolio also has products and solutions that cater to healthcare, e-commerce, and supply chain verticals. These include warehouse automation, digital safety and productivity solutions, and asset health monitoring – the last among these was developed in response to COVID-19, but has wider applications for the pharmaceutical industry. The BluTag 360, for example, is a digital tracking and shipment condition monitoring solution for vaccines and drugs.
“We recently introduced a warehouse management system for e-commerce businesses in India. With an installation time of less than five weeks, the Software-as-a-Service (SaaS) solution enables e-commerce companies to increase product diversity, price products competitively, and manage fluctuating demand,” revealed Chaitanya Paspuleti, who leads the safety and productivity solutions, about one of the offerings in the Impact portfolio.
Impact by Honeywell has a dedicated engineering team that works closely with its mid-segment clients to understand their pain points and develop solutions that are unique to this segment.
Today, India is one of the largest economies, and ground zero for innovation and production. The emerging mid-segment, rise in purchasing power and consumption, and demand for localized products and solutions are expected to be critical drivers for Honeywell. In the times to come, Honeywell intends to take these products and solutions to other emerging geographies around the world with India as its launching pad.
