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The $60-billion technology giant Danaher Corporation is eying acquisitions in India. It plans to invest $100 million over three to five years, and is looking to double its R&D headcount.
The NYSE-listed company is planning to acquire companies in India, which are in the environmental, test & measurement, dental, life sciences & diagnostics, and industrial technologies business segments, as it looks to increase its focus on 'high growth' markets.
Talking to BusinessLine , Jon Clark, Senior Vice-President Danaher, Asia said that the company's revenue has grown from 10 per cent a few years back to 25 per cent currently.
“This is the fastest growing market and we intend to increase our market share here,” he added.
While it did not go into specifics about the size of acquisitions, officials said that it will acquire companies to get its products or solutions to smaller towns and cities.
Danaher has taken a while to embark on its inorganic growth strategy.
The last time it made an acquisition in India was in 2009, when its wholly owned subsidiary Gilbarco acquired L&T’s fuel dispenser unit.
Seeing this growth, the company has also set up an R&D centre in Bengaluru, which currently has 500 researchers working on technologies across all its business segments.
“We will double this by the end of the year,” said Jai Shankar Krishnan, President, Danaher India.
Krishnan pointed out that India clocked revenues of $500 million as of last year and is growing at a CAGR of 30 per cent. This is the third development centre in India after Delhi and Mumbai, company officials added.
When asked about why the company is making these strategic investments at this point in time, Clark said that its wholly owned subsidiaries such as Tektronix, Leica, Beckman Coulter, KaVo, Sciex and Fluke have grown their businesses to attain a certain scale, and that these investments will help them to fuel their growth further.
Patrik Byrne, President, Tektronix added that in today’s rapidly evolving marketplace, customers demand innovative connectivity, automation and validation solutions to keep their businesses growing.
In 2014, Danaher set aside $1.3 billion on global R&D spends, which accounts for more than 6.6 per cent of its revenues.
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