Not deterred by difficult market conditions, companies still actively investing in R&D, study reveals 

Challenging market conditions are failing to deter companies from discussing about investment around R&D, new technologies, as per a new report from the data and analytics company GlobalData. 

“Amid the ongoing volatile market conditions, companies continue to engage in discussions surrounding potential investments," the report said. GlobalData, which analysed multiple companies' annual reports and earnings call transcripts in order to prepare its study, argued that despite the challenges posed by inflation, companies remain focused on driving innovation and growth in their respective industries.

“Companies are looking to strengthen their product offerings by upgrading the existing products or by introducing new products. In line with the constantly evolving consumers’ needs and preferences, companies are also actively seeking to adapt to emerging technologies and remain attuned to market trends,” said Misa Singh, Business Fundamentals Analyst, GlobalData.

Singh added that companies are also investing in start-ups to gain access to new technologies. “For instance, GAIL (India) Ltd has invested in start-ups that concentrate on innovative technologies including AI and digitalization, pipeline inspection, renewable energy, bioproducts and compressed biogas, logistics, and electric transportation,” she said.

GlobalData’s research on trending locations indicates, for instance, that Bosch will invest more than Rs 200 crore in India for its advanced automotive technologies and digital mobility. The company also plans to take advantage of the business opportunities presented by the infrastructure drive over the next five years in areas like metro rail, airports, ports, industrial parks, and smart cities.

Singh also gave an example of Li Auto which is investing in R&D for high C-rate batteries, high-voltage platforms, and ultra-fast charging technology. The goal, according to her, is to build an end-to-end BEV and charging ecosystem that can support a driving range of more than 400 kilometers with only 10 minutes of charging time.

“GlobalData's report highlights the resilience of companies to drive growth and innovation. As companies navigate through the current challenging economic landscape, these investments will play a critical role not only in meeting the changing needs of consumers but also in ensuring long-term success and competitiveness,” Singh said.