Increasing its focus on India as a strong growth market, Philips today said it is setting up a healthcare equipment manufacturing plant in the country for domestic and overseas markets.
Philips said the proposed unit will integrate two Indian firms acquired by it last year and besides expanding the company's local operations, the plant will make India a major supplier for global markets.
"For the first time, Philips is setting up a greenfield site for the healthcare segment in India," Philips Electronics India managing director and CEO Murali Sivaraman told PTI. The plant is expected to be ready in 18 months.
Sivaraman said Philips will develop the proposed unit as a centre of excellence and use it as a base for exporting healthcare products. He declined to share the investment details but said, "We will be investing big money in ramping up our production capacity and leverage on the two companies which we have acquired... For me, it is a strategic move with a 15-20 year vision."
The unit, which will make cardiovascular and X-ray equipment, is likely to come up in southern or western India.
"We are still studying whether it should be in southern India or western India. What is important for us is to leverage the eco-system that we acquired," Sivaraman said.
Last year, Philips acquired two medical equipment companies, Alpha X-rays and Meditronics, and is working on synergising their operations with the parent company. Philips has been operating in India for 80 years and reported revenues of around Rs 3,100 crore last year. The healthcare division contributes around Rs 500-600 crore to its revenues.
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The company is now focusing more on healthcare and wellness products to push sales and is going to introduce more products in the segment.
Philips Electronics India Ltd, a subsidiary of the Netherlands-based Royal Philips Electronics, is a major player in the lighting segment. It is also present in the consumer durables segment.