Stanley Black & Decker (SBD) India, part of the $11.3-billion manufacturer of industrial tools, electronic security products and fastening products, on Tuesday announced localisation as a strategy to increase market penetration and step up sourcing from India for its global operations.
In an interaction with media during the launch of its Stanley brand of Power Tools, Stanley Black & Decker President and Chief Operating Officer James M Loree said India, along with other emerging markets like China and Brazil, will play a pivotal role in the growth of the company to the next level.
“We are expecting exponential growth in these emerging markets as the centre of gravity is moving towards these markets and we want to make our company well equipped to face these competition. Even though we established in India three years back and its share in our global revenue is one per cent only, we are overhauling our strategy,” he said.
Loree said the company is going for an innovation and localisation strategy, which will take into account the local demand through in-house research and development (R&D) programmes. “We are trying to understand the market for the past three years. Besides further localising our manufacturing up to 50 per cent and supply chain, we are also looking at opportunities in medium-range products. The company is also looking for inorganic acquisition to make further penetration in the market,” Loree said.
Stanley Black & Decker India, which is headquartered in Bengaluru and has revenues of $300 million to $400 million in 2014, has two production centres in Chennai and an engineering centre which is handling its R&D.
“With the launch of Stanley brand of Power Tools in India, we now become a complete solutions provider. The company plans to fortify its presence in India and grow the business three times more in the next five years by focusing on the large enterprises, SMEs and tradesmen segments. As part of the strategy we will also double our headcount,” he said.