The Hindu Business Line : Philips on a rejig, to move away from consumer electronics

New Delhi, June 30 In a shift in its India strategy, Philips Electronics has decided to move away from consumer electronics to medical, health and wellness products.

A global supply team will soon make a visit to give effect to the new strategy and restructuring.

“There is buoyancy in the healthcare space across the country. We believe that as much 35-40 per cent of the total investment into setting up of a hospital is on the equipment. This gives a huge untapped market opportunity,” Mr Elwin de Valk, SVP and Cluster Leader (Growth Cluster), Philips Consumer Lifestyle, told Business Line.

The medical equipment business in India is estimated to be Rs 28,000 crore and growing annually at 12-15 per cent. Philips has a 50 per cent market share in the diagnostic imagery and critical care arena.

The company also plans to evolve its lifestyle business into four categories including healthy living, home living, interactive living and personal care. These include home theatre, water purifiers, and personal care products.

Mr de Valk said the company is mapping various consumer insights to develop products customised especially for the Indian market.

The company is giving increased thrust to its distribution strategy. This means there will be exclusive Philip Arenas in modern format stores to give customers experience about the product range.

On the investment front, he said the bulk of it will be on research and development and manpower training. “India is core focus and at least 50 per cent of the company’s global budget has been allocated for BRIC nations including India,” he said.