Philips India sets growth target of 23%

Philips India Limited, which is slated to become 'Philips Electronics India Limited' by the end of next month with the merger of its remaining legal entities, is aiming a higher growth of around 23 per cent in the coming years from the present year-on-year growth of 18-20 per cent.

"We have reached a stage where we are not comfortable with our present growth rate," K Ramachandran, vice-chairman and managing director of Philips India, said here on Wednesday, reminding the stated goal of doubling the company's business by the year 2007. At present, Philips India operations touched the Rs 3,000-crore mark.

According to him, the merger of Philips India's remaining entities "� software centre in Bangalore, Philips medical systems in Mumbai and accounting centre in Chennai "� with the main company has been theoretically completed. Legal formalities would be completed in another four weeks, he said.

Replying to a question, Ramachandran said that the company's decision to move away from the conventional electronic goods to healthcare technology and lifestyle products did not mean any shift of focus.

"Lighting and electronic products still contribute 70-80 per cent of the total revenues. Today's consumers are not just buying goods but also looking at them as to how these products will add to their lifestyles. We want to address that aspiration, though the segment is still a fraction of the total consumer market, as part of our sustainable business model," he said.

Henk De Bruin, senior vice-president and head of corporate sustainability of Philips International BV, who was here in connection with the company's launch of 'green product display' , said the key factors of sustainability of business practiced by Philips include social, economic and environmental goals.

According to him, the company has launched over 21 green flagship products, which has features like reduced usage of hazardous material besides being environmentally compatible and cost effective.