Diversified technology company Honeywell International Inc. (HON - Free Report) recently announced that indigenous technology of its Turbo Technology division has been used to design and build the turbocharger for Honda Amaze, a compact sedan from the stable of automotive major Honda Motor Co., Ltd. (HMC - Free Report) .
The turbocharger is used in the 1.5L i-DTEC diesel engine of Honda Amaze and utilizes exhaust gas to drive a turbine that operates a compressor, which feeds fresh air to the engine. This in turn reduces emission and improves fuel economy at desired efficiency levels. Consequently, the car is billed to be the most fuel-efficient car in India in its category at 25.8 km per litre.
With rising fuel costs and stringent rules and regulations for emission controls for a cleaner and pollution-free environment, turbocharging technology is increasingly gaining in popularity in India. Honeywell aims to capitalize on this business potential by aggressively pursuing turbocharger production in its Indian subsidiary. At present, the company supplies turbochargers to various local and global OEMs (original equipment manufacturers) through its manufacturing facilities in India, which serves as an export hub for automobile firms across the world.
Honeywell India has five state-of-the-art manufacturing and engineering facilities for its automation, turbocharger, and refining businesses, and five global centers of excellence for technology development and innovation.
Based in Morris Township, NJ, Honeywell manufactures a wide range of aerospace products and services, including control, sensing and security technologies for buildings, homes and industry; turbochargers; automotive products; specialty chemicals; electronic and advanced materials; process technology for refining and petrochemicals; and energy efficient products and solutions for homes and business.
Honeywell organizes its business into four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. Honeywell’s diversified business portfolio mitigates operating risks and has the potential to earn consistent above-average returns.
However, Honeywell faces intense competition from industry bigwigs such as Macquarie Infrastructure Company LLC (MIC - Free Report) and Compass Diversified Holdings (CODI - Free Report) , each carrying a Zacks Rank #2 (Buy). Presently, Honeywell also has a Zacks Rank #2 (Buy).