The Hindu Business Line : Philips India to launch health product range by next year

THE Rs 3,000-crore Philips India is gearing up to enter the consumer health and wellness products space. It is likely to launch a range of products by end 2006 that will take diagnostics and wellness monitoring from the public domain and bring into the homes of consumers who will track it personally.

The company, a subsidiary of the Netherlands-based Royal Philips Electronics, is in the process of setting up a `product creation group' under its domestic appliances business that will work towards new product categories for emerging markets. One of the first initiatives by the company will be in the area of clean drinking water for consumers in urban and rural homes. "Our visiting board was convinced by a presentation by the Indian team that global products don't always work for local, emerging markets," said Mr K. Ramachandran, Vice-Chairman and Managing Director, CEO, India. "There has to be an effort to build local capabilities to serve the needs of the emerging markets,'' he said, adding that the first of the products are likely to come into the market 18 months from now.

The company is also working at developing a range of products in healthcare, lifestyle and technology. At present, the company is undertaking an experiment in rural Karnataka that will allow consumers to monitor their wellness in the privacy of their homes. "At Philips India, we are now working at repackaging our proven technologies for consumers with increased aspirations but low affordability, the idea being not just to expand the market but create sustainable, long-term business," said Mr Ramachandran.

Philips, which is in its 75th year in the country, meanwhile, is in the final stages of legally merging all its businesses in India, according to Mr Ramachandran, who said all formalities for the formation of a new entity, Philips Electronics India, will be complete by August 15. The company, which employs 5,000 people in its operations, is also gearing up to move its software centre and medical systems division into a new, Rs 250-crore campus coming up at Hebbal, near Devenhally, said Dr Bob Hoekstra, CEO.

The company's 200-strong financial shared services centre, which looks after transaction processing for Philips' North American operations, meanwhile, is growing at a healthy pace, according to Mr Ramachandran, who said the operations might expand to take in similar work for the company's operations elsewhere around the globe.

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