Four key drivers for Agilent!
Agilent has been a leader in T&M for quite some time, and India remains a key market for the company.
According to Venkatesh Valluri, President and Country General Manager, Agilent Technologies India, the global market size for T&M in electronics and life sciences is $43 billion. This includes $18 billion in electronics and $25 billion in life sciences. From the India side, the size is about $1 billion.
He says: “Testing is becoming a more integral part of the product development process, especially in general electronics. It is now coming of age. As for the rate of expansion, it is approximately 15-20 percent YoY, and it is higher in India than in other parts of the world.”
Drivers for T&M
Telecom has been the leading driver. However, telecom growth may not be sustained YoY, for say, the next 10 years. “You can’t get 100 million subscribers each year! The difference would be more in the quality of service (QoS). This automatically drives testing and measurement,” he adds.
The second driver is the aerospace industry. The difference is through high-end technology. Agilent’s ADC conversion technology is one of the best in the world. In the next few years, new programs will make this segment even more stronger.
The third driver is manufacturing electronics. In India, it is definitely not as aggressive as China, but it is coming up. Even most of the EMS players are present here. Therefore, some ecosystem is building up.
The fourth driver is the design validation process. As the global R&D centers start coming into India, the companies are also starting to do product design.
Agilent in solar
Hold it guys! Agilent is all set to play a big role in the emerging solar/PV segment as well. According to Valluri, in India, solar/PV is getting into a manufacturing transition.
He notes “Agilent plays strongly in the nanomeasurement area. As solar emerges in India, nanomeasurement technology will become important. Agilent has the AFM (atomic force microscopy), which is a leading product line.”
Semicon in India
All of the large semiconductor companies are based in India. Also, a lot of high-end work is also happening here. The design validation market is slowly coming up.
Agilent feels that the semiconductor companies would need products with the right price points. There will be a need to build the right value at the right price points, says Valluri.
On the gloomy economic climate, he agrees that while the economic climate will not be so robust in 2009, Agilent operate in markets that are considered steady. “We believe that it will be reasonably okay to remain committed to such markets,” he says.
China, India largest growth markets
Ron Nersesian, Vice President and General Manager, Wireless Business Unit, Electronic Measurements Group, Agilent, points out that it is good to see growth that has been happening.
He says: “Growth in our business has been exceptional. It is an opportunity to work with the local companies as well as the Nokias of the world. We also see opportunities in aerospace and defence, wireless R&D, and installation and maintenance areas. China and India are the largest growth markets.”
Agilent’s strategic intent is to become the leading test and measurement company.
“If you look at the new wireless standards, we would like to provide solutions for all of these standards. We are working on both WiMAX and LTE. We are working with the top wireless vendors as well, says Nersesian.
In aerospace, Agilent work on signal analyzers, signal sources, etc. It also makes network analyzers and component test products, as well as non-linear vector analyzers.
Agilent has also invested in the network surveillance area. “We are focusing on RF surveillance and solutions as well, which can be of great interest to the Indian government,” adds Nersesian.