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Philips to merge three companies in India

Our Bureau  |  Bangalore 

The boards of Philips India Limited, have approved the merger of these three into a single legal entity, to be known as Philips Electronics India Limited.
 
The combined entity will have a turnover of Rs 2,000 crore with a total manpower of nearly 4,500. The new company will be headed by who is currently the head of Philips India.
 
The merger and change of name will take effect after consents and approvals from the shareholders and the high courts concerned are received.
 
This is expected to conclude in March 2005 and will have an 'appointed date' of 1 April, 2004. The merger scheme envisages a share swap ratio of one share of Philips Software for every two shares of Philips India and 78 shares of Philips Medical Systems for each Philips India share.
 
According to Bob Hoekstra, CEO, Philips Software Centre, "This merger will allow us to present a unified face of the brand to our stakeholders, and simplify the legal structure and enable seamless treasury operations."
 
Hoekstra clarified that business operations would not change as a consequence of the merger. "Internally it will simplify and rationalise Philips operations in India and the synergies of collaborative and collective leadership which has been in place for a number of years will only strengthen with the focus on One Philips," said Hoekstra.
 
According to a statement from Philips, the merger reaffirms the growing importance Royal Philips Electronics attaches to India and its commitment to making things easier and simpler for all stakeholders.
 
Hoekstra said, "A few years back, we had eight Philips entities in India and in 2003, we became three. We now move towards the consolidation of these three remaining entities into one. This is a global initiative towards creating one Philips family, the world over. It is Philips' policy to simplify its legal structure in every country."
 
He added, "The benefits are predominantly in the elimination of duplication that three legal entities require, and in seamless financial operations. It is not intended to achieve synergies in business operations."
 
Philips India Limited currently has a turnover of Rs 1,600 crore and is into lighting, consumer electronics, semiconductors, domestic appliances and personal care, while Philips Software last year exported software worth Rs 192 crore.
 
Nearly 20 per cent of Philips global software requirements are met by its Bangalore centre which employs 1,200 professionals.
 
Philips Medical Systems offers products for X-ray, ultrasound, magnetic resonance, computed tomography, nuclear medicine, PET, radiation oncology systems, patient monitoring, information management and resuscitation products, as well as a range of other services and reported a topline of Rs 130 crore.

 

First Published: Wed, September 08 2004. 00:00 IST
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