Digitalisation has become amplified after Covid-19: Mahesh Palashikar of GE

In a Q&A, the president of GE South Asia says decision making cycle for new projects got pushed by a few months because of the pandemic

General Electric’s (GE) healthcare arm, in partnership with Wipro, recently got approval from the Union government for production-linked incentives. With its focus on digital technology, it is looking at certain key themes in Covid-19 times. In an interview with Jyoti Mukul, Mahesh Palashikar, president, GE South Asia, says the decision making cycle for new projects got pushed by a few months because of the pandemic. Edited Excerpts:

How has the past one year been? Has business returned to the pre-Covid levels?

We are largely in long-cycle, capital-intensive project businesses. During March and April 2020, ongoing projects were impacted because you could not mobilise people onsite, and even our customers were deferring their project decisions in the energy sector. While business was there, the decision making cycle got pushed out by six to nine months. In the healthcare business, we saw that because of Covid-19, people needed equipment urgently and the demand was higher than anybody could supply. These were for X-rays, CT scan systems, ventilators, etc. We did the best possible through global and local support. In the aviation business, flight operations were impacted and now they have come back 70-80 per cent. In the military aviation business, we have strong technology but priorities of the armed forces got shifted because of the situation in Ladakh but it is a long-term business. We will stay focused in these areas. New projects are still picking up. For instance, the renewable energy tenders are probably still not where the government wants them to be and are picking up momentum.

Has Covid-19 changed the nature of businesses?

There are a couple of themes that were there already, but have got accelerated now. The biggest one is digital and remote healthcare solutions. It has become a priority for the government, hospitals and even for the common people. This is an area where we have strong offerings. The government focuses in terms of primary health centres in tier-3 and 4 towns, it has got due attention. We have a team in Bengaluru that supports digital healthcare not just in India but also globally. We have an Edison X platform that focuses on next generation digital solutions.

Another theme that is coming out is that renewable and clean energy will have an acceleration. Typically, the hazard in conventional energy is getting attention. We are probably the only company present across all fuels of power generation and in distribution. We have six very strong businesses that manage how you go through the energy transition and decarbonise.

In aviation, the future of flight as we travel for leisure and work has changed drastically. The way you plan travel and the digital solutions you have to track the safety of passengers and provide easier access to them is a significant area which will be needed for every individual.

How good is the government’s production-linked incentive scheme, and which unit of yours has got it?

GE Healthcare already operates three world-class manufacturing facilities in India. The PLI scheme is an excellent opportunity to boost ‘self-reliance’ for India in a critical industry such as medical devices especially since Indian healthcare industry imports a large portion of their medical equipment. With PLI, private/local companies can increase their global competitiveness with the local supply chain. Wipro GE Healthcare is honoured to have received the PLI approval from the department of pharmaceuticals. Over the next three to four years, Wipro GE Healthcare is planning investments of Rs 100 crore for setting up a new medical devices manufacturing facility in India. This will increase our production capabilities for local use and also enable higher exports from India.

How far is GE looking at new grid and storage technologies?

Round-the-clock renewable energy is by far the most signature theme of the government. Depending on the customer need and location of projects, you can have a different mix of wind, solar, hydro, some thermal and storage. There is also battery storage and hydro pump storage. The approach we take is that we have a full basket of offerings and based on the customer priority and need, we can customise renewable energy and round-the-clock solutions for them. In the grid segment, the green corridor will be needed for round the clock power. We have a grid software solution that can help balance. We also have the capability to design, execute and operate these solutions.

How important will digitalisation be in the various segments? Has there been enough absorption of technology in a price-sensitive market like India?

Every business offering we have has its own digital journey but after COVID-19 it has got amplified. Adoption of it has been fantastic in the renewable energy space. It is accelerating in the healthcare space. In aviation, there are two different aspects. It is about technology and how to manage assets efficiently. The digital passenger solutions in the sector are also evolving.