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| GE Healthcare eyes PPP route |
| Devjyot Ghoshal / Kolkata Dec 23, 2009, 00:48 IST |
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GE Healthcare is bullish on the public sector in India and is aiming to rake in substantial earnings through the public-private partnership (PPP) route. The company has already worked on projects with the Gujarat and Maharashtra governments and is looking to partner with West Bengal, among others.
The healthcare technology major’s domestic arm had a turnover of about $500 million (Rs 2,342 crore) last year and expects to grow between 16 and 20 per cent this year. While exports from India were likely to remain flat this year, its domestic business would grow by 25-30 per cent, of which the public sector sales would contribute up to 25 per cent, GE Healthcare President & CEO (South Asia) V Raja said.
And, if government spending in the health sector increases by 200 per cent over the next five years, public sector earnings could contribute up to 50 per cent of GE Healthcare’s domestic revenue over the same period, he added.
“The PPP route is a win-win situation for everyone. It makes sense, as capital investment for world-class equipment at government facilities can be done by us, while the patient pays the same as before. This way, the government does not have to pay for technology and can provide effective healthcare at a lower cost, while we can capitalise on large volumes,” Raja said here on Friday. He was in the city to inaugurate eastern India’s first molecular imaging PET/CT System. “We have already worked with and supported a number of states. Presentations have been made to the West Bengal government at the highest levels. The government has to play a role and we can partner with them. It is a thrust area for us,” he explained.
GE Healthcare also intends to go on with its research and development (R&D) program in India at its John F Welch Research Centre in Bangalore.
“Our main investment in increasing the size of the R&D team here. We have about 1,100 people already, but we will continue to add between 100 and 150 more personnel every year. On an average, our R&D spend in India is in the range of $40 million annually,” Raja said.
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