Philips To Take Up BPO Foray Proposal At AGM This Month

Kolkata, April 14 | Updated: Apr 15 2004, 05:30am hrs
Philips India Ltd, the lighting and consumer electronics major, has decided to enter the business process outsourcing (BPO) business, even as it has struck a deal with Videocon to sell its lamps factory in Kolkata.

Philips India, a unit of KPNV Philips of the Netherlands with a public holding of less than 10 per cent, will be seeking the permission of its shareholders at their 74th annual general meeting here on April 23, to modify its articles of association for new business forays.

The special resolution listed for the AGM says Philips wishes to provide all or any types, descriptions, of services ranging from customer service centres to data entry, insurance claim processing, payroll services, legal data base and market research.

Philips also proposes to get into the computer software and hardware business, including peripherals and consumables.

Meanwhile, Philips has decided to sell its lamp and glass shell manufacturing unit at Taratola in Kolkata to Kitchen Appliances India Ltd, a Videocon group company, for around Rs 1 crore. The unit has been lying closed for a few months now.

While the lighting division contributed 46 per cent of the companys turnover in 2003, the units at Vadodara in Gujarat and Mohali in Chandigarh have a substantially lower cost of production than the Kolkata factory.

During the year to December 31, 2003, Philips reported a profit after tax of Rs 67 crore on net sales of Rs 1,566 crore, against a profit of Rs 104 crore on sales of Rs 1,529 crore. Explaining its move into the BPO segment, Philips said that it had set up a national centre in 2002 to consolidate, standardise and re-engineer the accounting and control processes across the company.