New products key to Techtronic’s future, says founder’s son

In the 1,500 sq ft showroom at Techtronic Industries' headquarters in Tsuen Wan, Stephan Pudwill plays with the latest men's toys - cordless power tools such as hedge trimmers, mowers and chainsaws - and cleans the carpet with arguably the world's lightest vacuum cleaner.

President of strategic planning at the family business his father Horst, co-founded 29 years ago, Pudwill, flanked by the firm's finance chief and corporate spin doctors throughout the interview, repeatedly mentioned "new products" like a mantra.

Having amassed a portfolio of brands in the late 1990s and created new models and products in the 2000s, the power tool manufacturer is now betting its future on advancing the technology, pumping out new products and raising the level of automation so as to survive the changes in the industrial landscape in the Pearl River Delta (PRD), Pudwill said.

He said the firm spends about 2-2.5 per cent of its revenue annually, or about US$107 million last year, on research and development, with a focus on making its products cordless and increasing the performance of lithium-ion batteries.

"New products account for one-third of our revenue annually," he said. "We keep investing in our brands. It is critical to keep on the forefront of technology."

About US$1.4 billion of last year's US$4.3 billion revenue was derived from new products of various brands, including industrial power tool label Milwaukee, AEG, power tools and outdoor power equipment brand Ryobi, and floor care labels Hoover and Dirt Devil.