'We don't target retail consumers'

Q&A: Mark Levy

The fire protection market in India is estimated to be around Rs 800 crore, of which active protection such as fire alarms and extinguishers comprise 90 per cent. System Sensor, a division of Honeywell Life Safety, has its fingers right on the market's pulse. In a conversation with SAYANTANI KAR, Global President and CEO, MARK LEVY discloses that they are setting up a $3 million unit in Gurgaon to manufacture fire safety gadgets. Excerpts:

What encouraged you to start a production factory for fire safety equipment in Gurgaon?

We were encouraged by India's potential as many infrastructure projects such as airports and shopping malls are coming up. We started assembling fire safety product kits in 2001 here but the business has outgrown the set-up. We did a business of $26 million in 2007 and expect a growth of 25 per cent.

What will the plant manufacture?

A 60-member strong team will start with manufacturing fire detectors and then move on to audio and visual fire safety devices.

Who are your target consumers?

Honeywell doesn't target retail consumers. Our customers include commercial establishments like large retailers, hotels, builders, the government and high-end residential condominiums. With this factory, we also plan to cater to the markets in West Asia, South Asia and Africa.

What is the distribution process like?

We distribute it through trade channels, comprising large distributors and also large builders.

What gives you an edge over others?

Our advanced technology. For example, we have developed a unique technology in the form of a laser-based sensor in smoke detectors that gives early warning signals in case of a fire.

This is vital in the telecom sector and other high technology application centres, where time is critical. Our devices will also tell you if there is anything disrupting their function.

Is there anything unique about the Indian fire safety market?

India is interesting because while it has its own codes of safety, it also accommodates products imported from the US and Europe, which might be made according to the standards in their respective regions but are nevertheless effective.

What is the installation cost of your fire safety systems?

It depends on the level of adoption. Costs get optimised when Honeywell's executives work with developers to come up with a system design and layout at the construction stage. For a fire safety alarm system, the cost usually ranges from Rs 20 to Rs 35 per square feet.

What are you planning in the future?

We are working on early mass notification systems in the wake of the unfortunate campus shootings in the US. In India, we are evaluating the market for our gas leak detection devices, since piped gas in residences and gas-fuelled vehicles are on the rise here.

You have been in the industry for 37 years and have shaped it since then. How has it changed?

I am glad to have played a part in the adoption and the evolution of the conventional non-intelligent systems in the 1980s into high-tech, reasonably-priced intelligent systems.