Philips India to focus on consumer lifestyle, medical devices

Philips announced on Tuesday it was floating its lighting arm on the stock market, in an initial public offering aimed at selling at least 25 per cent of the unit.

The move was aimed at focusing on its larger health care division, which provided it two-thirds of its overall revenue, the company said. The announcement is of significance in India, where Philips is best known for its lighting division.

Philips India, whose combined annual revenue from lighting, medical devices and consumer lifestyle is an estimated Rs 8,000 crore, had hived off the lighting division into a separate unit. This was in keeping with the restructuring the Dutch parent had undertaken three years ago. The residual business, including health care and consumer lifestyle, was housed in a new division called Philips HealthTech.

Medical devices and consumer lifestyle, contribute nearly 32 per cent and 22 per cent, respectively, to Philips India's domestic revenue. Lighting contributes the rest but has been growing slower.

Philips India appointed V Raja as managing director last November for its medical devices and consumer lifestyle businesses.

A mail to Philips Lighting India elicited no response till the time of going to press. Persons in the know said the focus on lighting would reduce slowly in India, in line with global strategy.