Philips Healthcare India plans to invest up to $60 million (over Rs.380 crore) in three to five years to double manufacturing capacity of its Pune facility.
The company is also scaling up its operations under the PPP model to keep its growth rate healthy. It has pegged revenue growth at 18 per cent for the current fiscal.
“Philips India will be investing around USD 50-60 million for doubling the capacity of the Pune plant in around three to five years. This is excluding the land cost,” Philips Capital India Chief Executive Officer Chhitiz Kumar told.
Philips Capital India approves investments for various business models, including PPP, for Philips Healthcare.
“Once the capacity is doubled, more and more business lines such as ultrasound machines, CT scans and MRIs will come out of the Pune facility,” he added.
The Pune facility currently manufactures high-end cath labs and mobile surgery, he added.
It also serves neighbouring countries such as Sri Lanka, Bangladesh, Nepal and Bhutan.
On the company’s growth, he said: “We are expecting up to 18 per cent growth in the current fiscal. We have been seeing a double-digit growth year on year for the past four to five years.”
Kumar said Philips in India is today a roughly a billion dollar entity in three segments — lighting, healthcare and lifestyle. Out of this, around $300 million comes from the healthcare vertical.
Asked what will be the main drivers of growth, Kumar said: “At a macro level, the economy seems to be turning around. We are also making a lot of locally-relevant products locally.”
The company is also looking at adopting new business models for growth, he added.
“We are very focussed on adopting new business models in the country such as PPP in the healthcare sector. We, along with the Manipal group, are setting up seven radiology centres in Haryana,” Kumar said.
The next state the company is looking at for PPP model implementation is Jharkhand.
Philips India is a subsidiary of Royal Philips of the Netherlands, a diversified technology company, focussed on improving people’s lives through innovation in healthcare, consumer lifestyle and lighting.