The Hindu Business Line : Philips to focus on lifestyle products

Philips Electronics India Ltd intends to position itself as a market-driven and people-centric company, as a part of its vision 2010 strategy. The company will also unveil a range of lifestyle-related products.

“Philips has a high brand recall in the consumer’s mind. We are mapping out strategies to get well entrenched in the market. We also hope to double our turnover by 2010,” Mr S. Nagarajan, Senior Director and Sales Organisation Leader, India, Philips Consumer Lifestyle, told Business Line.

The company had achieved a turnover of Rs 2,967 crore for 2006-07.

“We will be declaring the results for the 2007-08 fiscal shortly,” he added.

The subsidiary of the Netherlands-based Royal Philips Electronics also said it is looking to grow in health care, lighting and consumer durables. It has recently integrated its erstwhile consumer electronics and domestic appliances and personal care businesses into a single consumer lifestyle portfolio.

“This year our main focus is on retailing our lifestyle products. This would include a gamut of products including personal grooming gadgets like shavers, home appliances and high-end LCD televisions. The company is developing and designing products based on extensive consumer insights,” he said.

IT peripherals and accessories is another segment that is a significant revenue earner for the company.

“Last year 0.5 per cent of the total revenues came from the peripherals and accessories vertical. This year, we expect 2.5-3 per cent of the total revenue from this division,” Mr Nagarajan said.

Observing that modern retail formats were fostering growth for the company, he said 18-20 per cent of the company’s sales currently come from these outlets. He said the peripherals, consumer and healthcare segments were expected to drive growth in the coming year.

He also said the bulk of investments for the company will be on research and development and manpower training. The appliances and electronics company has also tied up with Kohinoor Technical institutes for skill-set enhancement of students.

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