GE India not to focus on 'target' to achieve $8 bn in 2010

Firm recognises ‘new market reality’, says it was an ‘aspirational target’

Diversified global technology company General Electric Co (GE) said that the company was not focussing on the target it had set earlier to achieve a revenue $8 billion in India by 2010, owing to the ‘new market reality’.

The company which had reported a sales of $2.8 billion (last reported figure) in 2007, however said it remained confident about the growth opportunities in India in the medium to long-term, owing to huge spending that is expected to happen in the infrastructure development.

“We are not focussing on it .. it is an aspirational target we had set out two-three years ago. Given the new market reality, what I got to do is to figure out ways to bring the best technologies to this country,” T P Chopra, president and CEO of GE India said here. In 2007, GE India had set a target of touching $8 billion in sales in 2010.

Chopra said the company’s focus in India would be to bring in affordable technologies which are meant for the Indian market.

He said despite the liquidity issues which had somehow affected the infrastructure development in India towards the fourth quarter of the last year, the company was very much optimistic about the opportunity in this sector.

“I am very bullish on India. The country needs infrastructure and the investment will happen. I will give this credit to the government for really focussing and driving the infrastructure improvement spending in the country.”

The company expects that the demand on clean energy including solar and wind will drive its growth in India, apart from healthcare. GE has introduced a new baby warmer healthcare product which was designed by the company’s R&D centre in Bangalore, especially targeting the developing nations including India. Besides, the company has also introduced a portable ultrasound imaging which was designed and developed in Bangalore for global markets.

The company said despite the global economic slowdown, Indian healthcare market has mostly remained unaffected. “I do not see any sluggishness in demand in India market. Government continues to buy, tenders continue to float. Challenge however is a little more in financing,” V Raja, president and CEO, GE Healthcare South Asia said.

GE Healthcare had clocked a revenue of about $500 million in 2008, and is looking at a double digit growth this year.