Financial Daily from THE HINDU group of publications
Thursday, Jun 16, 2005
Mergers & Acquisitions
Philips India set to complete merger by July-end New company to be named Philips Electronics India
The Senior Vice-President of Philips International BV and Head of Corporate Sustainability office, Mr Henk de Bruin (left), and the Vice-Chairman and Managing Director, Philips India, Mr K. Ramachandran, addressing a press conference after the inauguration of the Philips Green product display at the Permanent Technology Centre of the CII Godrej Green Business Centre in Hyderabad on Wednesday. - Mohammed Yousuf
Hyderabad , June 15
THE Rs 3,000-crore Philips India Ltdwill complete the legal merger of all its business divisions in the country by the end of July and emerge with a new name - Philips Electronics India.
The high courts in Kolkata, Mumbai and Karnataka have cleared the merger of Philips Software division, Bangalore and Philips Medical Systems, Mumbai with the parent.
The formalities are underway, according to Mr K. Ramachandran, Vice-Chairman and Managing Director of Philips India.
The 75-year-old company in the country, part of the 30,000-euro Netherlands-headquartered global company, had earlier completed the legal merger of four other divisions in the country.
Philips India is a debt-free, cash surplus company. It has put in seven to eight years in re-design and cleaning up operations, Mr Ramachandran told newspersons o Wednesday.
Once the merger is complete, Philips India wants to move away from the consumer electronics-lighting image it has to being a healthcare, lifestyle and technology company, Mr Ramachandran said.
Philips India has major divisions in lighting, consumer electronics, healthcare, semi-conductor R&D and domestic appliances.
It is investing up to $50 million in its new R&D facility in Bangalore, where it intends to move by the end of the year.
The innovation R&D centre will focus on electronics, medicine and new technology development, in addition to embedded software.
Mr Ramachandran said the company has been growing at 18-22 per cent annually, which is higher than the industry averages. Its target is to reach Rs 5,000-crore turnover by 2007.
The company on Wednesday launched its Green Product display facility at the technology centre of the CII-Sohrabji Godrej Green Business Centre here.
Mr Henk de Bruin, Senior Vice-President, Philips International and Head of Corporate Sustainability, inaugurated the facility.
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