Royal Philips eyes $300 m exports

Royal Philips Electronics of the Netherlands is eyeing exports worth ¤300 million by 2007 from India. This is in line with the company's strategy of making India an export hub.

The company expects to derive this equally from product exports, software, research and development (R&D), and high-end business process outsourcing.

A high-level team, comprising the president and other board members, had recently visited India to outline the future strategy for areas of growth such as healthcare and technology.

According to sources, the Dutch consumer electronics major has set a target of ¤1 billion for its subsidiary Philips India in terms of activity level by 2007. This currently stands at ¤450 million.

"India is a fast-emerging economy with low product penetration. The country is gaining recognition for its increasing pool of local knowledge and talent. It will be the next big thrust for the company's Asia-Pacific operations and will be positioned as a global base for Philip's software development and knowledge intensive work," Gerard Kleisterlee, president and chief executive officer, had announced during his visit to India in September.

Sources said the company will increase the number of seats that it has in India for software and product development, and research from 1,000 to 2,500 by 2007.

It is planning to leverage India for select financial activities and the development of its business process software.

The company has already announced that it would invest $150 million over a five-year period in the country.