Royal Philips Electronics NV has begun production at a health-care facility in India, its first in the country, to expand by offering lower-cost interventional imaging systems.
The facility, 200 kilometers (124 miles) east of Mumbai, will produce the imaging systems for cardiology and radiology applications, mainly to serve smaller hospitals in the country with limited budgets, Bert van Meurs, executive vice president at Philips Healthcare, said in a phone interview today.
“We will continue to provide top hospitals in the cities with our high-end equipment from Best, the Netherlands,” Van Meurs said. “At the same time we will supply smaller hospitals with machines from this facility in India which require less complex products because the medical procedures at those places are less complicated.”
Philips is looking to expand its health-care operations in growth economies such as India, China and Latin America, at a time when sales of its medical division are under pressure in Europe and North America. In 2011 almost 40 percent of the Amsterdam-based company’s sales came from health-care.
The so-called “value segment” for interventional X-ray systems now makes up for a small part of the total 2.6 billion-euro market for those offerings, because the procedures require trained medical personal, Van Meurs said. It will grow more than 15 percent a year, he predicted.
Philips has developed the facility since buying Alpha X-ray Technologies and Meditronics in the country in 2008.
The company plans to ship some of the systems from the India site to growth economies such as eastern Europe and Latin America, Van Meurs said.