The Hindu Business Line : Philips aiming to double Indian operations

TERMING India as a "priority market" within Asia, consumer electronics giant Philips has said it aims to increase its overall Indian operations to over Rs 5,500 crore (1 billion euro) in the next few years, from Rs 2,500 crore.

The company's consumer electronics business in the country accounts for 40-45 per cent of the entire operations, while lighting comprises 35 per cent. Domestic appliances, software and semiconductors make up the rest.

"In revenues and sales term, we want to turn India into a 1 billion euro business in the next few years. In consumer electronics, we want our Indian team to be in the number one position in flat displays or high-end home entertainment business," Mr Rudy Provoost, CEO Philips Consumer Electronics, and Senior Vice-President of Royal Philips Electronics told reporters on the sidelines of IFA 2005 — billed as the world's largest consumer electronics trade fair, which kicked off in Berlin on Friday.

Mr Provoost said Asia's attractiveness as a market had picked up dramatically since 2000. "India has done a fantastic job in services and China is a factory of the world. A lot of trends have become prominent and we have to define a much more balanced approach to our global portfolio and our geographical strategy," he said.

In the last few years, Philips had focused on turning around its operations in North America and making it profitable, even as it maintained its stronghold in the European market, said Mr Provoost.

"India and China are priority countries in Asia. We have a lot of catching up to do as we have missed opportunities in the past. We are passionate about these two markets," he said. To strengthen its position in the Indian market, Philips had put a strong team in place in the country, he said.

"The next step is finding the right partners to focus on the right customers, retailers and suppliers, and we have made progress there. The third part of our strategy is to make sure our product portfolio is attractive. So, we will leverage on our strong global portfolio. Our Indian team is working on a plan in the audio area on finding ways to maintain the 40-per cent market share that we have," Mr Provoost said.

Philips is showcasing its latest range of products including media centre (wireless multimedia device), cordless videophone, digital photo display and audio jukebox at IFA.

The company unveiled its new High Definition Televisions, which have five times the resolution compared to a standard television.

While Philips plans to launch many of these gadgets in the high-end market segment in India, there is no timeframe for introducing the High Definition TV.

"In the next few months or years, High Definition will take off in India. If India is ready for High Definition TV, we are ready," he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page