Not content with 37 takeovers and over a $5.5-billion spend in the last four-year period, David M Cote, chairman and CEO, Honeywell International, is still scouting for acquisitions, to help Honeywell International grow through the inorganic route.
This would have been an impossible dream, if it were to be stated four years ago, when the company was on the verge of being merged. But not anymore.
Cote, a former General Electric man, is credited with turning around Honeywell, a technology and manufacturing group, that was on the verge of being merged with GE.
Former GE Chairman Jack Welch had even extended his retirement period to consolidate the deal which, however, failed. That is now history as Cote had taken over the company and transformed it into a $30-billion conglomerate.
Cote returns to India within weeks. The last time Cote was here, he was accompanying US President George W Bush.
In India, Honeywell wants to "identify good sources for all kinds of products like castings, forgings, automobile components and small sub-systems". The group, which had posted revenue of around $400 million through three companies -- is expected to grow 25 per cent per year.
Globally, Cote has won recognition for creating a process for acquisitions. "We are looking at growing through both organic and inorganic methods. We found that the most efficient way to grow is the organic way as its returns on investments are very high. But, acquisitions are the best cash deployment methods," Dave Cote, as he is fondly known, told Business Standard in an exclusive interview.
"If we look at cash generation, the first priority is to invest in our businesses, which we always do. We use three methods to deploy the money -- dividends, share re-purchases and acquisitions. All three are valid ways to grow the value of the company," he added.
After issuing dividends and that, too, with a 2 per cent yield, and share re-purchases of $2 billion in the last four years, Honeywell still has enough cash for acquisitions.
If the acquisition price is over $50 million, Cote himself supervises the deal, despite the company having over 250 senior "leaders".
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