Royal Philips Electronics, a global leader in Healthcare, Consumer Lifestyle and Lighting has outlined its focus on India as an emerging market. Keeping its commitment to delivering affordable healthcare solutions in emerging markets, Philips announced the acquisition of Meditronics, a leading manufacturer of General X-Ray systems targeting the economy segment in India.
Emerging Markets
Philips has stepped up its focus on emerging markets by creating an emerging markets structure which has become operational since spring this year. Focusing on emerging markets allows the company to accelerate growth in developing countries such as India, China, Latin America and Russia.
“Executing on our strategic decision to scale up our presence in emerging markets has been an important element of Philips’ transformation into a focused, less-cyclical company in recent years,” said Gerard Kleisterlee, President and Chief Executive Officer, Royal Philips Electronics. “We are committed to continue this course of action by increasingly redirecting resources to help fuel growth in emerging markets, and build out our industrial footprint in this cost-effective and high-quality manufacturing environment - for Healthcare, but also for our Consumer Lifestyle and Lighting sectors.”
Thirty percent of Philips’ sales in FY 2007 were from emerging markets, also representing a 10% sales growth over FY 2006. This geographical spread contributes to the resilience of Philips’ portfolio.
Philips has said that it is redirecting Euro 250 million of innovation spend from mature to emerging market to drive growth and (original) product & market development, and that it is also redirecting Euro 250 million to emerging markets to align marketing spend with innovation to ‘embed’ its product & solution simplicity message with customers; increase the dialogue with stakeholders to allow them to experience the brand.
Healthcare
Philips is committed to delivering affordable healthcare solutions in emerging markets. And the acquisition of Meditronics is its second in recent months of a healthcare equipment maker in India specialized in manufacturing products for the economy segment - one of the fastest growing market segments in the global healthcare equipment market.
Said Murali Sivaraman, CEO, Philips Electronics India Limited, “Meditronics’ high-quality and clinically proven economy segment product portfolio complements Philips’ existing high-end General X-Ray range and further strengthens Philips’ leading position in India’s high-growth imaging and monitoring equipment market. This also allows us to gain access to local manufacturing platforms at emerging markets cost levels.”
Analysts estimate that the General X-Ray segment of the Indian market will show annual growth rates of 10% or higher. This acquisition gives Philips access to strong sales and distribution channel for the economy segment. Meditronics has dealer network of 25 dealers with large geographical coverage, focused on mid/low end X-Ray business.Lighting
Philips in India is now a key production, research and development (R&D) hub for the company’s global lighting operations.
Philips has recently set up a global research and development centre for lighting electronics at Noida, India. It is its third such unit in the world. The facility will develop advanced lighting solutions, will be scaled up and linked to the global development centre in Shanghai. The centre will cater not only to the specific needs of the Indian market but also the Asia-Pacific region, Europe and North America. The centre currently employs 35 engineers and the headcount will increase with the unit taking up more work.
Philips aims to lead the Indian industry in Green initiatives and create awareness about Energy Efficient Lighting solutions. Solid State Lighting is the next wave of energy efficient solutions and Philips became the first company to introduce LEDs for the home segment last year. The company now plans to introduce the Consumer Luminaire range in India in the next few months.
Consumer Lifestyle
In India, Philips drives innovation by actively combining its global expertise with local consumer insights to deliver offerings designed for Indian audiences. After the successful launches of the Intelligent Food Processor (hands-free mixer grinder) and the Intelligent Water Purifier last year, Philips introduced Rip-all AZ1856 Sound machine in India early this year. Philips now plans to introduce in India some of its innovative global offerings from the Consumer Lifestyle stable such as Aurea TV, Ambisound and high end beauty and personal care range.
Good going Philips, at least companies like yours based in Europe can take charge and lead the world and let American companies to bleed further until they become extinct.
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