To invest in R&D
Philips India is looking at expanding its capacity for healthcare products as well as investing in research and development (R&D).
Murali Sivaraman, managing director and CEO, Philips India, said, “We have identified five sites now for manufacturing and R&D facilities. We are looking at expanding our capacity for general X-ray and cardio-vascular products for both exports and domestic consumption.”
Sivaraman did not elaborate on the funds required for the expansion or the optimum capacity required.
Among other plans, the company is bullish on its lighting products and has already bagged the contract for the Jawaharlal Nehru stadium, one of the key venues of the Commonwealth Games.
For the year-ended December 2009, the lighting sector grew by 12 per cent and the healthcare sector, which grew by 22 per cent, were the strong performers of 2009.
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Philips is also bullish on the television space. It will introduce television sets by the third quarter of this year, manufactured by Videocon. Currently, Philips has close to 4 per cent market share in the television category. The television market in India is currently dominated by Korean brands such as Samsung and LG and Philips’s arrangement with Videocon is expected to help it build its presence in the extremely competitive and price-sensitive market.
Videocon has capitalised on its low manufacturing costs and has been seeking assets and global brands worldwide.