Philips India, revealed that it would take about 12-18 months to reorganise its Rs 6,000-crore business, following its Dutch parent deciding to create two firms focussed on healthcare-consumer lifestyle and lighting solutions opportunities, according to
Philips India, revealed that it would take about 12-18 months to reorganise its Rs 6,000-crore business, following its Dutch parent deciding to create two firms focussed on healthcare-consumer lifestyle and lighting solutions opportunities, according to a PTI report.
On the recent announcement by Royal Philips, Philips India Vice-Chairman and MD Krishna Kumar said: "It will probably need approvals of the board, regulators and the shareholders to formally reorganise the business and was expected to take 12 to 18 months time."
Royal Philips, recently announced it would split in two, separating its healthcare-lifestyle division (HealthTech) from the historic Lighting business in a dramatic streamlining move by the 120-year-old electronics giant.
Besides, each company would have a dedicated management structure, as a result of the planned integration of the relevant sector and group layers. The new operating structure enables additional cost savings across the enabling functions resulting in EUR 100 million additional savings in 2015 and further EUR 200 million in 2016.
"Both the Lighting and the HealthTech divisions of Rs 6000-crore Philips India would contribute equally in the overall company's revenue in future," Kumar added.
At present, the share of the Lighting and the Healthtech divisions to overall turnover as per 2013-14 results was 54 per cent and 34 per cent respectively.
The balance would originate from the revenues of the Innovation Campus located at Bangalore, he said.
Kumar said that in all the business segments in which Philips was operating, the company was the clear market leader and added that the CAGR growth over the last five years was 24 per cent in India.
Philips India is also looking at inorganic growth in all its business segments.
The company today inducted Vikram Limaye and Vivek Gambhir as independent directors on its board at the AGM held here today.
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