Another Fortune 500 Company sets up R&D Center in Mumbai

A research and development  facility was established in Mumbai, India’s largest city by Ashland global specialty chemical company.  The newspaper, BusinessLine,  states the center will cater to personal and home care companies in India  such as Unilever, Procter & Gamble, Colgate Palmolive, L’Oreal, Godrej Consumer Products, Emami, Dabur India, Cavin Kare, Himalaya and Marico Industries.

With the increasing expectations of consumers to create higher-performing products, this facility will provide technical support to accommodate to the anticipation.  There are formulation laboratories for hair, skin, oral and home care, controlled environment laboratories for measurement science to support claims substantiation and a microbiology laboratory for preservative optimization and micro challenge test.

Quoted in Cosmetics Design Nandkumar Dhekne, vice president, Asia Pacific, Ashland Specialty Ingredients, said that  a technical center in Mumbai will prove beneficial for the Indian and global market,  “We anticipate that the Mumbai technical center will generate great ideas that will be channeled back into our global innovation funnel.”

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October 24, 2012   No Comments

Global Engineering talk at Industrial Research Institute resonates with audience, May 9, 2012

Last Wednesday Dr. Navin Kunde of the Clorox Company and I spoke at  the Annual Meeting of of the Industrial Research Institute with over 300 global executives in attendance. The material include examples of small and large R&D initiatives in India/China by some of most reputed companies in Europe and America. I’ve received dozens of emails from attendees with more questions and requests for our slides.

Here is how the President of the IRI captured some of the key takeaways from our talk:

Gunjan Bagla, Amritt & Dr. Navin Kunde, Clorox, Global Innovation/Corporate Transformation

  • 60/40 superiority test (60% consumer preference in blind testing) is a powerful tool to assess product design (This is Clorox’s practice).
  • Use process, people and perception reviews for any technology organization assessment
  • About half of India & China R&D efforts are being conducted for companies from outside these countries.

If you wish to receive a copy of the slides, please email usa at amritt dot com with your country, business email and include your title. (Webmail and ISP mail requests will receive a response if you also include your work email and phone number).

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May 15, 2012   No Comments

Yahoo! produces 30% of its intellectual property from India

India’s role in global R&D has increased steadily in the last decade. My colleauges and I have directly participated in educating and encouraging North American and European corporation to include India and China as part of their global R&D ecosystem, through the Amritt Global Innovation Practice. Our clients are working with universities, national labs, private product companies, small inventors, and with many of R&D specialists who offer global engineering services using technical labor from Asia. Virtually all of our work is confidential so we are unable to share many examples of our clients success on this blog.

Yahoo! Inc however is not our client; The India Expert can report that its India R&D center’s contribution to intellectual property (IP) filed by Yahoo globally has increased to almost one-third the past two years, from 10-12% previously. While the company setup its Bangalore facility in 2000, Shouvick Mukherjee, vice-president of Yahoo India R&D, says innovation and product development from India have now started adding to the company’s overall revenues. “The major differentiator  is the responsibility of handling end-to-end products that we have compared to any other R&D center in India,” he claimed.

For example, Yahoos run an ad exchange a for which a product called Predict was developed in Bangalore. This product forecasts which online advertisement will get what level of click. This fundamentally improved the return on investment for advertisers, according to Mukherjee.  Another example is an internal platform product codenamed  Helion, which made it possible to launch multiple websites in parallel.

Yahoo has used a captive center model, primarily because most of its users are located outside the USA “There are companies that are outsourcing work and Yahoo is not in those section of companies. More than 50% of our user base is outside the US. And hence, it is very important for Yahoo to be global in its R&D” says Mukherjee.

In the United States, Yahoo has been under revenue and stock market pressure and reduced its workforce by 4% in an across the board cut in December , after prolonged rumors of a 10-20% cut focused largely on Blake Irving’s product development organization.

Only a few global companies have achieved a third of of R&D coming out of India and many companies don’t need to aspire to that goal. But it is valuable for all of us who struggle with running a global engineering organization to note that some have crossed this threshold.And its important to remember that the Yahoo approach of a captive center driven by market need is only one of many ways to succeed in India.

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January 2, 2011   No Comments

Juniper Networks expands R&D in Bangalore

California-based Juniper Networks is planning a major expansion to its research and development center in Bangalore, India. The company will add 750 seats and 450 equipment racks at a new site (Prestige Exora Business Park) in Bangalore over the next two years. The company currently has 1,800 staff members and 300 employees of development partners located in Bangalore.

Its operations in India are responsible for a full spectrum of activities including hardware and software development, test engineering, field trials, program management, quality assurance, technical documentation and product line management. It also provides 12-hour-a-day global customer support covering all Juniper products and operates a Finance Shared Services Center, which delivers functions to Juniper Finance organizations across the world.

“This expansion reflects our ongoing commitment to increasing the depth of experience and expertise in the India region, which is becoming increasingly important not just as a source of engineering talent but also as a fast-growing market for Juniper Networks,” said Sridhar Sarathy, managing director of IEC at Juniper Networks.

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December 24, 2010   No Comments

Nestle to invest in research and development in India

Swiss food and consumer goods giant Nestlé will open a research and development center in Manesar, Haryana, south of India’s capital city, where it will use local ingredients and spices, as well as low-cost Indian research and engineering to make products for India as well as other countries.

According to the New York Times, Nestlé will focus on making nutritionally enhanced foods for people with lower incomes, said Klaus Zimmermann, senior vice president and head of research and development. The $50 million facility will open by 2012.  Click here to see Nestle management on CNBC television talking about their plans.

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October 31, 2010   No Comments