Philips India reports robust top line growth with Lighting, Consumer Lifestyle and Healthcare posting increase in their respective market shares
Led by its customer focused and market driven strategy, Philips India delivered robust comparable growth in gross income with all the three key sectors-Lighting, Consumer Lifestyle and Healthcare posting strong top line growth and increasing their respective market share. The gross income on a comparable basis for 12 month period ending March 2014 increased by 9.26% as compared to financial year March 2013, while Net Profit grew by 70.92%.
Growth was driven by both category and geographical expansion as well as through the strengthening of the distribution network. A strong focus for the year remained on introducing locally relevant products and delivering great customer service, which resulted in a stronger brand equity as well as business growth.
In a significant development, Mr. Vivek Gambhir, Managing Director, Godrej Consumer Products Limited (GCPL) and Mr. Vikram Mukund Limaye, Managing Director and CEO, IDFC Limited were added to the Philips India Board as Non-Executive Directors with effect from March 28, 2014.
Philips Lighting
The Lighting Sector grew by 6.0% over the previous year’s corresponding period. The growth was driven by strong growth in Professional Lighting Solutions and Consumer Luminaires. The growth was driven mainly by aggressive LED penetration across businesses, increasing Philips share of the Lighting business from 10 % to 17 %, reach expansion in semi-urban market, increasing retail presence through Light Lounges and Light Shops and big wins in the Professional Segment. Professional Lighting Solutions witnessed growth of 8.5% driven by strong growth in LED across segments, with continuous focus on expansion of locally relevant LED portfolio through the successful launch of 23 LED/Solar products during this period. The LED growth has been significantly higher than projection and the company’s LED contribution in Professional Lighting Solutions business now stands at 37% for the current period with clear leadership in LED. Consumer Luminaires business continued the growth momentum during 2013-14 with 29.7% growth, driven by continuous expansion of locally relevant portfolio, the addition of 17 new brand retail stores across India and improving the efficiency of existing stores. Focused marketing activities and investments in advertising and promotions have aided this growth.
Growth in Light Sources business was driven by strong performance in LED lamps. Development of locally relevant LED portfolio helped record growth of 53% in LED systems.
Philips Lighting India reached yet another landmark in their journey with the revamping of Lighting of two iconic Landmarks of India i.e. India Gate in Delhi and Gateway of India in Mumbai. Philips Lighting bagged best use of celebrity, innovation and effectiveness awards in Asian Customer Engagement Forum.
Philips Lighting also received an award for “Market Share Leadership of the Year in the LED lighting market” by Frost & Sullivan
Philips Consumer Lifestyle
In 2013-14 Consumer Lifestyle continued to gain and strengthen market share in key focus categories such as Domestic Appliances, Garment Care and Personal Care. These categories combined achieved a healthy growth of 28% in the period ended March 31, 2014.
In Domestic Appliances business, Philips strengthened its market share and insights in Kitchen Appliances category by launching new range of products relevant for local tastes and behavior patterns to drive growth which included Rice Cookers, Mixer Grinders and Food Processor. In Garment Care category, leadership position was strengthened by increasing market share by driving conversion of dry to steam irons and launch of new dry iron range. In 2013-14 the company also launched Pain management as a new category expanding its portfolio and focusing on the key aspect of living an active life with less aches and pains.
Philips continued to build share in the Personal Care business in India through integrated media campaigns for Hair Care and Grooming categories supported by launch of the Kerashine range of hair dryers and hair straighteners and AquaTouch shavers in Grooming.
Philips Innovation Campus
Philips Innovation Campus (PIC) based in Bangalore continued to delivering meaningful innovations for local and global markets. PIC delivered over 10 products last year for India and growth geographies like Africa and Indonesia. Some meaningful innovations from the campus for India include:
The Intellispace consultative critical care solution, which enables an intensivist at a central location to monitor patients in distant multiple Intensive Care Units (ICUs), almost in real time. It is a solution which addresses the growing shortage of qualified physicians and nurses, while dramatically improving quality of care.
Compact and low cost ECG device, VISIQ, a unique USB-based tablet Ultrasound system.
A solar DC grid- an alternate source of energy that answers the energy crisis.
PIC continued to contribute to global products and also expanded its innovation capabilities to cater to markets like Singapore and Indonesia. The Mobile Obstetrics Monitoring (MOM) which detects early pregnancy risks, provides convenient access to clinical data anytime and anywhere, is deployed in Indonesia. In healthcare, PIC continues to play a key role in imaging solutions.
PIC has forayed into and built up competencies in internet of things, sensor, cloud computing and mobile technologies. It is working on solutions that provide connectivity to a range of home appliances from air purifiers to coffee makers, which makes consumers’ lives easier in today’s busy world.
An energy management approach to lighting control and design in the built environment is imperative to ensuring a sustainable future. The Light Master-IP is an intelligent lighting management system that helps manage energy and lighting requirements of commercial spaces by leveraging the power of connected lighting.