• Your Company continues to be focused on Honeywell Operating System (HOS) which encompasses end-to-end business system institutionalisation to enable and sustain exceptional growth along with productivity improvements through Total Customer Experience, New Product Introduction, Order to Cash and Integrated Business Planning. The foundation of HOS is Lean/Six Sigma, Order to Cash, Velocity Product Development, Agile CMMI, Honeywell User Experience, Commercial Excellence and Working Capital. The Pune Fulgaon Factory and Global Services are at Silver level. Your Company is aspiring for higher level of HOS maturity allowing them to be competitive by improving Total Customer Experience through demonstrating agility of a small company and benefits of the scale of larger organisation, excellence in Key Business Processes, Functional Transformation and Foundational initiatives.
  • The demand of process automation products has been primarily driven by pharmaceutical sector. This is largely due to huge demand of medicines and other pharmaceutical products.
  • Process Solution business has wide portfolio of industrial automation products and solutions that help customers operate safe, reliable, efficient, sustainable, and more profitable facilities. The Process Solutions business had a good year. The business portfolio was further enhanced with new products, solutions, and services. The new offerings included process control, process safety, process optimisation, process simulation, connected IIoT solutions, and industrial cyber security. Your Company has a world-class and rich set of offerings for the process industry.
  • Building Solutions business provides automation and control technologies that help make buildings green, safe, and productive. As part of its intelligent buildings suite, it provides building management systems, fire detection and alarm systems, access control systems, video surveillance systems, integrated security systems, and integrated building management systems based on Honeywell’s Enterprise Buildings Integrator
  • Building Management Systems business is a global leader in the connected buildings space and maintains a leadership position in India with the widest range of building automation technologies. The solutions and products of this business are already present across multiple verticals in India, which include large mission-critical facilities, government infrastructure like airports, stadiums, metro stations, IT, residential, industrial and hospitality buildings. Building Management Systems has a diverse business portfolio comprising of building control solutions and global field devices.
  • Continued growth in industrial machinery along with new opportunity wins helped to drive good growth for Sensing and Internet of Things business. The Electronic Sensing portfolio as well as Packaged Sensors performed well in 2018-19 with good revenue in pressure sensors, limit switches, construction equipment shifters, pressure switches and basic switches for vehicle body controls. Steady demand for gas instruments and pollution monitoring equipment drove growth for our gas sensor portfolio, and growth in automated vending machines and other automation devices drove our OEM scan engine portfolio. Your Company remained focused on identifying and winning new sustainable business opportunities in key market verticals.
  • Your Company plans to include more industrial customers during this year. A dedicated channel management team deployed earlier is helping grow your Company’s channel business and allowing Company’s direct sales team to focus on key account management with a wider portfolio.
  • Your Company assures “First-Time-Right” quality, built on matured processes and a strong continuous improvement culture. It leverages its Lean thinking, DevOps and automation to assure quality, and responsive customer-centric strategy to enhance customer experience. This business continues to deliver good results consistently over the years. It has increased its footprint globally through new portfolios, offerings and geographic expansion supporting Honeywell’s global growth agenda. Global Services is making investments in talent development and retention strategies in the consultancy space for accelerated growth through newer verticals, Software and IIoT.
  • Global Manufacturing business focuses on delivering high quality products and project solutions right and fast to global Honeywell entities as well as the India market. Your Company continues to invest in adding new manufacturing lines, new product introductions, acquiring new key customers and expanding its footprint. The Global Manufacturing business delivered good results consistently year on year. Global Manufacturing project business had a good growth year. Product business also continues to show a steady year-on-year growth.
  • Your Company’s mix of exports revenue increased as compared to the previous period. Overall revenue registered annualized growth of 17.7%. Net income was 11.3% of sales, as compared to 9.3% in the previous period. Increased competitive environment in both domestic and exports segments continues to be a challenge.

My view: A not so well-covered and researched multinational company, it comes on the back of strong earnings and price momentum. Very difficult to find such companies in the Indian environment and hence probably the hefty valuations. A great compounding story which should form a part of your portfolio.

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