Targeting to double its turnover to Rs 5,000 crore in next three years, Philips Electronics India on Tuesday said it was scouting for mergers and acquisitions.
NEW DELHI: Targeting to double its turnover to Rs 5,000 crore in next three years, Philips Electronics India on Tuesday said it was scouting for mergers and acquisitions.
"We are looking at doubling the current turnover of Rs 2,649 crore by 2010-11, which will not be possible to achieve from organic growth alone, so we are also looking at mergers and acquisitions in the country," Philips Electronics India Executive Director and CEO Designate Murali Sivaram, who will take over as the head of company next month, told here.
He said Philips has already started identifying companies across health care, lighting and consumer durable domains in India as part of its inorganic growth strategy.
On the timeline for the possible acquisitions, he said, "There is a sense of urgency...but these are early days yet."
Outgoing Philips Electronics India CEO K Ramachandran, however, said things were "on the drawing board" and could crystallise within the 12 months time in as many as five to six new areas.
Asked about the budget earmarked for the M&A activities in India, Sivaram said finance was not an issue as the company had a cash surplus of Rs 500-600 crore on its balance sheet.
"We have sufficient cash and borrowing capacity within the company to support our plans and will go for a company, which will help us enter an adjacent space we are already in or new price points where we are not present," he said.
Philips had globally announced that it would double its earnings by 2010 and there were high expectations from emerging markets like India, China and Latin America. The company is targeting a growth at around 15-16 per cent in India.
By 2010-11, Philips is expecting its organic growth to contribute about 60-70 per cent and the rest coming from inorganic activities.
Ramachandran said healthcare and consumer segment were expected to drive Philips' growth in India, which could be about 1.5 times of the lighting business.
As part of its growth strategy and renewed focus on consumer lifestyle, healthcare and lighting sectors, the company has earmarked an investment of Rs 10 crore for a series of marketing programmes targeting the school children, educational institutes and consumers.
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