May 29, 2015: Philips India has decided to focus on the fast-growing LED lighting market in India. As a result, it is demerging its lighting business in India. Philips will also expand its LED manufacturing capacity in Vadodara and Mohali.
About 40,000-odd public shareholders in Philips India, who hold about 3% stake, will get shares in the new demerged lighting business on 1:1 basis. Philips holds 97% share in the Indian subsidy.
Philips has also set up an independent company?Philips Lighting India Ltd. Philips India will continue with healthcare and consumer lifestyle. The 8,000 employees in India will get split equally between the two companies and there will be no job losses, said the company.
?The demerger process is underway and we soon expect to receive court approval. India figures among the top five markets for lighting business of Philips and we expect to grow further under the new arrangement with dedicated focus on LED lighting,” said Harsh Chitale, Managing Director, Philips India.
As per Philips India’s 2013-14 annual report, the lighting business accounts for 55% of the company’s total sales in India, followed by healthcare and consumer lifestyle business. Total sales during 2013-14 amounted to Rs 5,838 crore.
Philips India demerges lighting business to focus on LED market
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