Philips India buys X-ray machines manufacturer Meditronics
22 November 2008
New Delhi: Philips Electronics India has announced the acquisition of Mumbai-based X-ray machines manufacturer Meditronics. It did not disclose the amount of the transaction.
Speaking to the media, Royal Philips Electronics CEO Gerard Kleisterlee said the acquisition underscores the company's decision to increase investment in high-growth areas, while delivering on its commitment to supply affordable healthcare solutions in emerging markets. He did not disclose the value of the deal.
Meditronics will mostly cater to the Indian healthcare market, though Philips would also export some units to other emerging and developed markets. Philips plans to expand sales in the Indian market, and would increase its research and development (R&D) investment in the country as well.
The deal is to be closed in the fourth quarter of the current fiscal, subject to contractual and regulatory approvals. It marks the second acquisition by Philips in India this year, having earlier acquired Alpha X-ray Technologies in September 2008. The medical equipment business in India is estimated at around Rs2,800 crore, and growing annually at 12-15 per cent.