With the focus shifting on affordability the world over, Philips is now looking to make India & China its global manufacturing hub.
Philips Healthcare says manufacturing at its Healthcare Innovation Centre (HIC) in India has helped the company enter the lucrative mid-market segment in India.
With the focus shifting on affordability the world over, Philips is now looking to make India & China its global manufacturing hub.
Below are the excerpts from the interview.
Garde: In India Philips has been present and has dominated the premium segment in most categories. What happens as a result of having a local manufacturing plant is that now I can actually start participating. For example this BV Vectra that you see behind us is actually a mid-performance product for me and I wasn't even present in that segment till now. I was selling only premium products till now. Today I am getting into a mid-performance segment with a product which is priced appropriately both from profit margin for us and for an affordability for our customers.
Q: And that has happened because you are locally sourcing?
Garde: Because we are locally sourcing and because we are locally manufacturing.
Q: But in case you had to import BV Vectra versus (interrupted..)
Garde: We don't have that comparison, because this product did not exist and we did not participate in that segment at all.
Q: You said this is a facility that would cater also to international markets. Are you already exporting, if yes, how much and going forward which would be the focus markets that you would focus first from this unit and how much do you intend to increase the percent of exports?
Ranganathan: Yes, we are already exporting. We have been exporting from day one of our inception as an entity. So, we are already exporting. We export across the globe, we export to European markets, we export to Brazil and Latin America, we export to China, to all our markets in Africa and the Middle East as well.
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