Dutch technology major Philips Electronics has re-worked its strategy for India by boosting medical equipment and home products such as shavers, juicers and mixers as it seeks to widen its reach beyond its conventional leadership in lighting products.
The company aims to gain a larger pie in India's fast growing medical equipment and consumer lifestyle businesses through innovative products and introduce next-generation technological products in audio and lighting business, where it already holds a dominant position.
At present, over half of the company's revenues come from its lighting division, while the consumer lifestyle and medical equipment segments together account for the rest.
"We have identified opportunities in all three divisions of the company and have chalked out specific strategies for each one of them," Rajeev Chopra, managing director, Philips Electronics India told HT.
The company's sales in India grew by 20% during 2010 and the company expects to register high growth rates in the coming years.
In lighting products, where Philips already is the market leader, the firm plans to give major sales thrust to next generation LED (light emitting diode) lights across India, which includes promotions in around 600,000 villages along with residential and commercial buildings across cities. "We wish to move the market towards LEDs and have the first mover advantage," said Chopra.
With a longer life span of around 15 years, an LED light does not require quick replacements as compared with incandescent bulbs or even with CFLs. Philips has introduced an array of LED lighting products ranging from 5watt bulbs to solar powered street lighting solutions. LED lighting is just taking off in India and offers huge business opportunity.
In the estimated R3,000 crore medical equipment market in India, Philips intends to drive growth through introducing innovative products in categories such as CT scanners, MRI equipments, ultrasound machines and cardio-vascular x-ray machines. It recently launched MR-guided high intensity focused ultrasound (HIFU) solution 'Sonalleve' that offers a non-surgical alternative to uterine fibroids in women.
(The reporter's travel and stay for the Goa visit were paid for by Philips Electronics)