The Hindu Business Line : Siemens' Goa plant to supply X-ray machines to developed markets

IT is not just medicines but also the medical equipment sector that is sensitive to price. And to cater to this segment in the global market, the medical solutions division of Siemens Ltd is embarking on a new experiment.

"Siemens is associated with high-end medical equipment. But there is a price-sensitive market segment even in developed markets," said Mr D. Ragavan, Executive Vice-President (Medical Solutions Division), Siemens Ltd.

To tap into this segment, Siemens' Indian production arm at Goa will support an experiment to supply affordable solutions. The plant will manufacture different models of x-ray machines for the mid-segment in developed markets such as South America, African countries, the European Union and Asia, he said.

"Our export plans for the year have been reconfirmed by the parent company (Siemens AG) and there will be a central production point for the business unit in Germany," he said. There is a price advantage in making products locally, he said and estimated that it works out close to 30 per cent less to produce in India. The new plan to produce for the mid-segment in developed markets is slated to kick-in this year, he added.

In the past, the local subsidiary has been producing x-ray machines at its Goa plant, which were subsequently integrated at the company's plant in Germany. Few products are already being assembled in Goa, including some models of mobile x-ray equipment, x-ray tables and c-arms, he said.

Further, to support export plans at the Goa plant, the company would increase its staff by about 25 per cent, he added. The company ended 2004 with new orders worth Rs 500 crore.

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