Bullish on India as a strong growth market, the country’s leading lighting firm Philips Electronics is doubling CFL manufacturing capacity at its Mohali plant in Punjab.
During the course of this year, Philips India has already doubled the annual CFL capacity at the Mohali plant to 40 million units, and is all set to double it again over the next six to nine months, industry sources told PTI.
“The company is investing to double the capacity again, to 80 million units, within 6-9 months,” said one source.
When contacted, Philips Electronics India managing director and CEO Murali Sivaraman said, “We have nearly doubled our (CFL) capacity this year... Going forward, we will be making significant investment in CFL to get the growth.”
He declined to provide investment and expansion details but said, “We are investing at the Mohali plant to expand the capacity. My aim is to grow minimum 15—20 per cent in all the categories that we are operating.”
Lighting business accounts for about 50 per cent of the Dutch subsidiary’s revenues, which were in the region of Rs 3,100 crore last year.
Industry estimates place Philips India’s market share at around 30 per cent in the total lighting business of around Rs 4,500 crore.
The consumer or home segment accounts for 60 per cent of the company’s lighting business.
The company has also added a new line recently for making thinner tube lights, called T5, at its Mohali factory. “It saves about 40 per cent energy... We are making a big play there... We have started manufacturing these at our factory in Mohali,” Sivaraman said.
Philips has been operating in India for 80 years and Sivaraman said the company aims to grow 2-3 time India’s GDP rate, or about 15-20 per cent.
He said in line with its Dutch parent’s policy, Philips India is now focussed more on the healthcare and wellness products, which includes introducing eco-friendly, power saving lighting products.
Philips Electronics India Ltd, a subsidiary of the Netherlands-based Royal Philips Electronics, is also expanding healthcare equipment and consumer durables businesses in the country.