Audio systems maker Harman International Industries Inc expects about $1 billion of new orders by the end of this year and is in talks with Indian automakers as part of its plans to expand in the emerging markets, its top executive said.
"In the next 6-9 months we will generate new orders to the north of $1 billion," Chief Executive Dinesh Paliwal told Reuters. The company, which provides audio products for cars made by BMW, Audi, Volkswagen, Daimler, Toyota, Fiat SpA and Ferrari, has a total order backlog of $13.5 billion. Paliwal, however, declined to say where the new contracts would come from.
Harman, known for brands such as Harman Kardon, JBL, Mark Levinson and Infinity, has been pushing hard into emerging markets such as China, India and Brazil and is eyeing $1.5 billion in revenue from these countries by 2015. Harman received a $1.2 billion contract from Volkswagen in the second quarter that was raised to $1.6 billion in the current quarter.
"We got our first entry in Mahindra and Maruti (in India) in terms of semi-OEM business where Harman products are offered through dealers but they do not come factory-fitted in the cars," Paliwal said. Maruti Suzuki, 54.2 percent owned by Japan's Suzuki Motor Corp, started the small car revolution in India in 1983 and Anand Mahindra-led Mahindra and Mahindra Ltd makes SUVs and trucks.
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