Philips expects double-digit growth in Indian personal health business, expands local manufacturing

New Delhi, Aug 29 (PTI) Dutch multinational company Philips is aiming for double-digit growth in India where it has expanded local manufacturing in the personal health business, a top company official said on Tuesday.

The company has expanded production at its co-manufacturing site in Baddi, Himachal Pradesh, which will now produce mother and childcare products in addition to the beauty and grooming products already being made at the site.

"There is a big commitment to the personal health business and when we think about our ambition of the consumers we want to reach, and the fact that we want to have the same impact, India plays a very important and evident focus for us," said Deeptha Khanna, EVP and Chief Business Leader, Personal Health, Royal Philips.

Now people want to live better and are more open to technology, she said, adding that Philips is expanding local manufacturing in India based on local insights.

"We want to deeply understand the consumer insights, and the team spends a lot of time to understand emerging needs and works with the global team to decide on products from the global portfolio which can be helpful and deciding what we need to innovate for India," Khanna added.

Philips' personal health business includes the beauty and grooming segment, where it has products such as hairdryers, hair straighteners, hairbrushes, beard trimmers etc. Its health business also includes oral care -- electric toothbrushes, and mother and child care products.

"Our focus in every market, including India is how to build relevant and delightful propositions," she said, adding, "In order to build scale, you must earn it by being delightful and relevant to consumers. This is why we are investing in the capabilities we have." On the growth in personal health business from the Indian market, Khanna said: "Our consumer ambition in India is to rapidly scale. This is a market where we see ourselves growing double-digit, which is the right potential for the market." She further added: "We have real faith and belief in the growth prospects of India and we expect a double-digit growth.... India's GDP is growing and we will grow more than that." According to financial data accessed by business intelligence platform Tofler, Personal Health contributed revenue of Rs 898.5 crore to the total revenue of Rs 5,429 crore of Philips India Ltd for the financial year ended on March 31, 2022.

In many categories, in which Philips operates in the personal health business, it is in the leading position and will maintain that lead, Khanna added.

When asked about diversification, she said penetration of the categories in which Philips operates is still not mature enough and offers huge headroom for organic growth.

The company also announced the launch of the Philips Beard Trimmer Series 1000 and Philips Hair Straightening Brush, both tailored to the needs of Indian consumers and manufactured locally.

"While our initial focus was on co-manufacturing beauty and grooming products, we have expanded production at our co-manufacturing site in Baddi, Himachal Pradesh, which will now produce mother and child care products as well," said Philips Indian Subcontinent Head, Personal Health Deepali Agarwal.

Philips' Personal Health manufacturing presence in India includes sites in Baddi and a co-manufacturing facility in Silvassa Union Territory.

On retail presence, Agarwal said a major chunk of consumers are becoming digitally native, it still sees a lot of demand from offline channels.

"Therefore, we have a balanced retail presence between online and offline. We continue to be present in large online as well as relevant offline stores across gadget stores, cosmetic stores, pharmacies and supermarkets," she added. PTI KRH SHW