Philips reshaping 3 core businesses

Written by fe Bureau | Kolkata | Updated: Jun 30 2010, 07:51am hrs
With the joy going out of the TV sector, consumer electronics major Philips Electronics India is restructuring its core businesses here, focusing on three sectors: lighting, consumer lifestyle and health care. Speaking at the 80 th annual general meeting of the company here on Tuesday, MD and vice-chairman Murali Sivaraman said it had consciously scaled down the sale of TVs but was growing other consumer lifestyle products like DVDs, kitchen appliances and personal care segments. In three months, the company would soft-launch its Mother and Child range of products. We dont want to jump in a big way, but will launch it at select cities in the next three months, said Sivaraman.

Of the three focus areas, the lighting sector grew by 12% and the healthcare sector by 22%. Operating profits for the year 2009-10 dropped by Rs 21.2 crore largely due to lower sales and eroding margins in the consumer lifestyle sector. The reduction in margins is changing the shape of consumer electronics, said Sivaraman. Philips has signed a licensing agreement with Videocon. We want to focus on a portfolio that is profitable, he added.

In the next few months, the company is likely to increase capacities in the healthcare space. "We are looking at acquisitions in all three sectors. Theres an integration happening in the healthcare segment too, said Sivaraman.

At the AGM, the board took shareholder approval to borrow Rs 1,000 crore to fund the companys organic and inorganic growth by way of acquisitions and strategic alliances across all sectors.