Dutch appliances, healthcare and electrical products maker Philips plans to increase localisation of its products in India from 50% of what it sells now to 75% over the next three years, aided by the government’s `Make in India’ initiative and roll-out of goods and services tax.
The company may also evaluate foreign direct investment in retail at an appropriate time,Philips India managing director V Raja notified that with the GST becoming a reality ,it will make more sense to expand manufacturing in India and to adjust to supply chain needs. He further mentioned that at present, even the products which are imported in India are made in special lines since these are customised. But the emphasis will be on local production
Philips plans to curtail up its e-commerce presence for now and evaluate the retail FDI option when its India business reaches a critical mass.
The company, which is transitioning into a health technology firm with presence in segments such as kitchen and domestic appliances, personal grooming, recently demerged the lighting business into a separate entity in India as well. Lighting accounted for about 55% of revenue of the erstwhile combined entity.
Philips is also entering the men’s skincare segment with a face cleaning brush. It will be the first brand in this segment, which is a logical extension of male grooming products, Raja said.
At the same time, the company will now make national its acquired brand Preethi, popular in southern India, and extend it to new products.
By Baishakhi Dutta