Falcon Autotech, a Noida-based maker of warehousing automation products, expects international operations to account for about a third of its revenue over the next few years, even as it sees demand for its products growing in India.
The company has just initiated international expansion this year and expects overseas sales to contribute 5-10% to its revenue this year, Falcon Autotech CEO, Vineet Baid told ET, without disclosing the firm’s revenue figures.
“While in India it is the ecommerce and logistics segment that is driving demand, in the US it is driven more by the small and medium enterprises,” said Baid.
The company has grown 300% year-on-year over the past three years and at present ecommerce and logistics account for about 70% of the company’s business, he said.
“As we expand, this will come down. Ecommerce and ecommerce-specialised logistics were the first industry verticals to feel the need for automation in the warehouses fulfilment centres given the quick scale-upscale-downs, variability in demand patterns, demanding customers, complex order processing, etc,” he said.
To begin with, Falcon Autotech is working with companies that are already its customers in India, after which it will become easier to approach new customers, the CEO said.
The company plans to double its manpower to 250 by next year. At present, about a quarter of its workforce is dedicated to research and development.
“We will continue to invest heavily in R&D. Besides on-boarding the best talent from the industry, we will also be setting up a state-of-the-art R&D centre enabled with latest tools and technologies,” Baid said.
Apart from e-commerce, Falcon Autotech has been seeing demand from FMCG and automotive industries, among others. With manufacturing in India, the company exports its products to West Asia and Southeast Asia, apart from the US and a few other countries.
Note: Article By Priyanka Sangani, Featuring Falcon Autotech was Originally Published in The Economic Times National Edition, 1 November 2016