Koninklijke Philips Electronics NV, the Dutch parent of consumer electronics firm Philips India Ltd, is setting up a new wholly owned subsidiary in the country for manufacturing printed circuit boards (PCBs) and other components.
The PCB manufacturing business of Philips India will be transferred into this subsidiary in line with the global restructuring of the Dutch consumer electronics group. The company has proposed to capitalise the Indian arm initially at Rs 5 crore. But it expects around half of its business to come from contract manufacturing in the next three years. The PCB business of Philips consumer electronics is currently 100 per cent captive.
PCBs are used to make televisions, audio systems and medical systems. All these segments are expected to boom in the next few years. Philips already supplies other components such as semi-conductors and chips to several television makers worldwide. The Dutch company has also sought necessary regulatory approvals in India for setting up the new subsidiary. Cor Vreven, manager communications of The Netherlands-based Philips Consumer Electronics, told Business Standard that the decision to set up a new subsidiary was in line with Philips
