Building In India, Thinking Global
Omron is turning up the dial on manufacturing in India, focusing on healthcare and automation - two of its core lines. The company's healthcare unit has begun producing blood pressure monitors in Chennai for the domestic market, and it intends to export those devices to Europe and Africa.
Chief Executive Officer Junta Tsujinaga, 60, described the strategy from Bangalore, where Omron runs an automation R&D center. "India is not only for the local business, but also it should be a global business," he said through an interpreter. He declined to detail investment amounts and said the scale up "will be done in steps."
The company has operated in India for about 30 years, though it has done limited manufacturing there to date. As India offers subsidies and other sweeteners to attract electronics makers, Omron is preparing to make use of those programs. The company already provides equipment to Foxconn Technology Group for use at its facilities in India.
Growth Targets And Where Demand Could Come From
Omron, founded 93 years ago, is looking to restart revenue growth after three consecutive years of declining sales. Its shares have dropped more than 50 percent since a 2021 high, though they have recovered some ground this year as earnings improved.
India is still a small slice of the top line, but management sees momentum. Omron aims to lift revenue in the country by about 12 percent a year on average through the 2030 fiscal year, and Tsujinaga said current sales trends are already running ahead of that target. He expects India's quickening economy and expanding manufacturing base to drive demand for factory automation products.
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There is also a semiconductor angle. Chipmaking uses Omron components that regulate conditions like temperature and vibration to boost yields and reduce defects. India now has five chip packaging facilities in operation and is trying to lure more assembly and wafer plants.
Competitive Reality And The Investor Lens
The market is not without friction. Price conscious manufacturers - especially small and mid sized firms - can be wary of automation if the payoff takes time. Omron also contends with lower cost rivals from China.
To differentiate, it is pairing hardware with add ons such as engineering and training. "The real value is going to come from the value-add engineering that we are bringing together with the component," said Sameer Gandhi, who leads the local industrial automation unit.
The bottom line: Omron is building capacity in India, pacing investments, and positioning for demand from factories and chips alike. Watch for execution against that 12 percent India growth goal and any signs that incentive driven manufacturing delivers sustained orders.
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