3M India, the subsidiary of $25.3 billion diversified technology focussed 3M Corporation, is expanding the company’s R&D capabilities in India with an aim of meeting the growing local needs. The company which reported a revenue of Rs 742 crore for the year ended December 31, 2008 with an YoY growth of 22 per cent, is spending Rs 60 to Rs 70 crore to set up one more R&D centre in Bangalore.
With the new centre, the company aims to have a R&D strength of about 200 scientists over the next four years from the present 85. This will help the company come out with new innovative products exclusively meant for the Indian market, company officials said here on Thursday.
“Looking at the business in India, majority of our growth is coming from new products. Almost 25 per cent of our sales today comes from new products that did not exist four years ago. Our focus is to develop new products which are relevant to local market and accordingly we are putting up the new lab,” Ashish Khandpur, senior executive director - technical said.
In 2008 alone, the company has developed about 60 products in it’s India lab exclusively meant for the local market including dust free ventura adopter, raised pavement markers and dust free sander. 3M India, which was established in 1988 now markets about 5,000 products in India with focus on healthcare, industrial, consumer and office and safety and security segments. The company employs about 1,200 people including about 400 in manufacturing and 500 in sales and marketing. The company expects its growth rate in the Indian market to continue despite the global recession.
Ajay Nanavati, MD, 3M India said, the company’s focus would be to grow at least two and half times more than the growth of Indian GDP.
“Our growth rate in 2008 has slightly come down since our revenue base is also growing fast. I don’t see any reason to panic as most of the segments we operate in including industrial markets, transportation, healthcare and safety are growing at a healthy rate. We hope to be able to sustain the momentum going forward,” he added.
3M has five manufacturing facilities located in India including Ahmedabad, Bangalore, Pondicherry and Pune.