Ge Medical Systems Setting Up Fifth Local Unit

GE Medical Systems, part of the $92-billion GE Corporation, has decided to set up its fifth production unit in India to manufacture accessories for X-ray machines. "Our fifth unit will be set up in Karnataka near our existing centres there. We are in the process of acquiring land for this," GE Medical Systems vice-president (global technology operations), Scott C Donnelly, told Business Standard.

The unit will be involved in manufacturing heat and radiation generators which constitute the heart of X-ray machines.

The plant is expected to go on stream by late next year and the production will be basically for GE Medical System's global exports. The initial investment in this venture is expected to be around Rs 5 crore in additional to the Rs 2 crore cost of land. The capacity of this unit will be in the range of 2000-2500 generators per annum.

This plant is likely to be under the umbrella of GEMS X-ray Ltd which already has a production unit in Pune. GEMS X-ray Ltd, erstwhile GE Elpro Medical Systems Ltd, is involved in design and manufacture of X-ray equipment for the domestic and export markets.

GEMS is one of the world's leading manufacturers of diagnostic imaging equipment, including conventional and digital X-ray, cardialogy products enhanced with the recent Vingmed acquisition, computed tomography (CT), magnetic resonance, ultrasound positron emission tomography and nuclear medicine. The corporation is also involved in providing radiation therapy systems, diagnostic information management systems in addition to diagnostic information parts and accessories.

In addition to the planned fifth production unit and the one in Pune, GEMS in India has two joint ventures with Wipro Corporation and Bharat Electronics (BEL). Wipro GE Medical Systems has two production units at Bangalore and Goa with a cumulative investment of Rs 14 crore with GE controlling the venture with a 51 per cent stake and the remaining with Wipro.

This venture has been set up to provide world-class medical products and services to South Asia and also position India as a global supplier of diagnostic imaging equipment. Its business activities include the design and manufacture of CT and ultrasound scanners, software services, as well as sales and service of the full line of medical imaging and therapy systems.

GE-BEL is involved in the manufacture of X-ray tubes and detectors with General Electric controlling 76 per cent stake while the rest is with Bharat Electronics. "Our fifth unit, in addition to the global exports, will be catering to all of these ventures in addition to the general Indian market at large," Donnelly added.