Wipro GE Healthcare to integrate GE Healthcare’s units

A General Electric (GE) sign is seen on display at Western Appliance store in Mountain View, Calif., Tuesday, Dec. 2, 2008. General Electric Co. said Tuesday it expects fourth-quarter earnings to be near the low end of its guidance and will take a charge of up to $1.4 billion as it starts to shrink its struggling GE Capital finance arm next year because of the ongoing credit crisis. (AP Photo/Paul Sakuma) NICAID:110922564

Wipro GE Healthcare, a joint venture between Wipro and global conglomerate GE’s healthcare business, today announced that all the stand-alone units and plants of GE Healthcare in India would be integrated into a single entity.

The integration would simplify the structure through consolidation of GE Healthcare’s life sciences and medical diagnostics business units and X-Ray manufacturing plants, the two companies said.

As per the consolidation plan, several existing stand- alone business units and manufacturing plants of GE Healthcare in India would be integrated under the Wipro GE Healthcare entity.

The companies said that the strategic move would help in effective management, resource mobilisation and accelerating the growth for GE Healthcare, the $17 billion healthcare business of General Electric Company (GE), through Wipro GE Healthcare’s large distribution network.

Currently, Wipro GE Healthcare distributes about 85 per cent of GE Healthcare’s products and solutions in India.

The GE Healthcare business units to be integrated into the existing joint venture with Wipro include GE Healthcare Life Sciences, GE Healthcare Medical Diagnostics and GE Medical Systems India.

GE Healthcare’s Life Sciences and Medical Diagnostics units currently distribute their products outside the JV. GE Medical Systems manufactures X-Ray products and other diagnostic imaging products and accessories for export to GE Healthcare worldwide.

Following the integration, the JV would become the exclusive vehicle for GE Healthcare’s activities in India.

Wipro GE Healthcare’s current president and CEO V Raja would continue to lead the expanded business entity, while 1,200 employees from the three GE Healthcare entities would become part of the consolidated business entity.

GE Healthcare President and CEO John Dineen said: “This is a natural next step for the very successful partnership we have had with Wipro in India.

“Simplifying our company structure will improve service for our customers and has the potential to accelerate the introduction of more cost effective, affordable and quality healthcare solutions in South Asia.”

Wipro Chariman Azim Premji said, “GE has been our valued partner since 1990. Together we have defined many growth stories in healthcare sector in South Asia. This consolidation under Wipro GE Healthcare further strengthens this relationship...”

Wipro GE Healthcare is the Indian sales and marketing arm of GE Healthcare.