AGILENT TECHNOLOGIES
Background
Agilent Technologies is a global US$ 7.2 billion
diversified technology company offering technology
and measurement solutions to a wide range of
customers in communications, electronics, life sciences
and chemical analysis. The company was spun off
from IT major Hewlett-Packard in 1999. Agilent’s
global presence includes 28,000 employees serving
customers in more than 110 countries.
Agilent offers solutions for the entire product life
cycle from research and development to manufacturing
to installation and management. Agilent products and
services range includes Test and Measurement
equipment, Semiconductor products, Life Sciences/
Chemical Analysis solutions, Communications solutions
and Automated Test equipment. In India, Agilent
Technologies has two entities – a sales, marketing
and support organisation, Agilent Technologies India
Pvt. Ltd. and an IT-enabled services organisation,
Agilent Technologies International Pvt. Ltd.
In the Test and Measurement space, Agilent helps
customers design, manufacture, and deploy new
products and technologies with advanced electronics
test, measurement, and monitoring solutions. Agilent
also provides technology components and tools that
help customers design, build, operate, manage and
maintain next generation communication devices,
networks and services. Some services that fall under
the umbrella of the Communications solutions
business include wireless solutions, communications
designer solutions, broadband access solutions,
monitoring and management services and optical
solutions.
Agilent’s Life Sciences and Chemical Analysis business
in India helps identify, quantify, analyse, and test the
chemical and biological properties of substances. As
one of the leading manufacturers of advanced products
and instruments in the areas of gas and liquid
chromatography, mass spectrometry, network data
systems, gene expression analysis, bio-informatics and
laboratory-on-a-chip technology, Agilent provides
comprehensive solutions for nucleic acid analysis, gene
expression analysis, genotyping, protein and peptide
analysis, drug discovery, drug development, and
drug manufacturing.
Agilent’s customers are in segments such as electronic Factors for success
manufacturing industries, laboratories in educational
institutions, electronic research and development, Local manufacturing facility
defence and space. Other customers include telecom Agilent started its Indian operations when the
providers and pharmaceutical companies. Agilent has economy was not liberalised. At that time, import of
an employee strength of around 1,000 professionals. Test and Measurement instruments was banned. To
sustain its operations in the country, Agilent set up a
One of the leading players in Test facility at Bangalore to manufacture Test and
and Measurement segment Measurement instruments like oscilloscopes, logic
analysers, power metres and frequency counters. After
Agilent is one of the leading players in the Test and
the liberalisation of the economy in the ‘90s, the
Measurement market in India in terms of revenue.
Company stopped manufacturing in India
Agilent’s revenues in Test and Measurement
as imports were more cost effective. This strategic
equipment for the communications sector grew by
move enabled the Company to remain competitive
8 per cent to US$ 22.4 million in 2003-04. Its market
in the Indian market.
share in this sector grew by about 1 per cent to
35.1 per cent during the same period. Agilent has
Early mover advantage
been recognised as the Test and Measurement
Agilent entered the Indian market as early as 1989 as
Vendor of the Year by Voice and Data magazine for
a part of Hewlett-Packard with the objective of
the fourth year consecutively. Agilent is one among expanding Test and Measurement sales. Agilent was
the top five Bio-equipment suppliers in the country.
formed as a result of corporate realignment at HP in
Agilent is considered as one of the best employers 1999. Agilent is listed on the New York Stock
in India. It is recognised for its innovative people Exchange.
practices, focus on
professional growth and
development, and its
high level of employee
engagement.
Agilent was recognised as Frost
and Sullivan’s 2004 Preferred
Test and Measurement Vendor
of the year. It was also awarded
the Frost and Sullivan 2004
Market Leadership award in
three areas, arbitrary waveform
generators and function
generators, spectrum analysers
and vector network analysers.
US COMPANIES IN INDIA
Market leadership and R&D
Agilent holds many product and market leadership
positions. It is one of the leading producers of Test
and Measurement products, and gas chromatography,
liquid chromatography and mass spectrometry
systems. Agilent is also a leading supplier to the
telecom industry and produces one of the world’s
widest range of fibre optic components.
Agilent spends an average of more than 10 per cent
of its revenue on R&D. For example, Agilent’s total
global R&D spending for 2004 was US$ 933 million,
13 per cent of its net revenue. This investment in
R&D ensures that Agilent has cutting-edge technology
to help its customers be more profitable and
competitive. During fiscal year 2004, 30 per cent of
revenues was generated from products introduced
over the past 2 years.
Leveraging the India Advantage
India as an ITES hub
Agilent has set up an IT-enabled services operation in
Gurgaon leveraging India’s developed infrastructure
and skilled labour force. The unit is involved in business
operations such as providing business support,
engineering support, IT support and financial services
to Agilent entities worldwide.
India as an R&D hub
The company has an R&D services centre for its
Communications products, Test and Measurement
group and Semiconductor products group. Agilent
has also established a System on Chip (SOC) Centre,
its integrated chip design centre in India that provides
Application Specific Integrated Circuit and System
Design services to its global clientele. Agilent has over
100 highly qualified engineers at its R&D hub who
provide cutting-edge technology work for varied
global applications. The hub addresses aspects of
software development for Telecom and Test and
Measurement applications, ASIC development from
high-level design, logic design, physical design,
verification and system firmware design for industries
such as networking, computing, imaging and storage
applications.
US COMPANIES IN INDIA
Future plans
Based on its success in India, the company plans to
increase sales across its key business verticals including
communications, electronics, life sciences and chemical
analysis. The company also plans to increase its market
share in the growing telecom and pharmaceuticals
sectors.
Agilent plans to increase its R&D sourcing especially
in the areas of wireless solution systems, OSS and
billing software for telecom service providers, and
device drivers for electronic products.
Agilent also plans to increase its headcount from the
existing 1,000 to 2,500 professionals by the end of
2006. Some of the additional workforce will be
deployed for R&D operations in the country.
Agilent Technologies: AT A GLANCE
• Global US$ 7.2 billion diversified technology
company. 110 countries. 28,000 employees
• India: 1,000 professionals. 2 businesses:
Agilent Technologies India Pvt. Ltd. (sales,
marketing and support) and Agilent
Technologies India Pvt. Ltd.
(IT-enabled services)
• One of the top Test and Measurement
players in the country
• One of the top 5 bio-equipment suppliers
in the country
• Listed on the New York Stock Exchange
• Total R&D spending in 2004: US$ 933
million, 13 per cent of net revenue
• For Agilent, India is: ITES & R&D hub
• Future Plans, India: To grow sales across key
businesses. To increase market-share in
telecom and pharmaceuticals sectors. To
increase R&D resources. To increase
headcount to 2,500