Acquisition to help boost Philips
Philips acquired Maya Appliances, a Chennai-based company making the Preethi range of mixer grinders last year and has plans to set up a fully integrated facility in Chennai to continue manufacturing of its complete range of small appliances such as mixer grinders, induction stoves, electric cookers, juicers and food processors.
While recently launching its new mixer grinder products Preethi Lavender and Power One, T T Siddarth, director - Special Projects at Preethi Kitchen Appliances commented, “Preethi's product ranges are renowned for their performance, quality, reliability and safety.” He further said that the company has been registering a 25% growth year-on-year since 2002 and for the year 2010-11 it registered a turnover of Rs 430 crore. For the current financial year, Maya Appliances expects to post Rs 525 crore.
Vijay Srinivasan, managing director of Maya Appliances stated that in order to set up one manufacturing unit in the specific segment, an amount anywhere between Rs 30-50 crore is required. Hence, he opines that an integrated unit could require more than Rs 100 crore.
According to Mr Srinivasan, following the acquisition, the process of integration of the two companies- in terms of technology collaboration and certain back-end operations- has been rounded up. However, Preethi will continue to remain a wholly-owned subsidiary of Philips. Although Philips has not yet commenced manufacturing its product range at Preethi's facilities, Mr Srinivasan has not ruled out the possibility of that in the near future.
Last year, Philips had shifted the headquarters of its domestic appliances business to Shanghai in order to promote revenue growth in China and the region.
Priyanka Roy Chowdhury |
Dutch consumer electronics giant Philips is eager to step into the Indian market, making it the company’s global hub for manufacturing and innovation for its kitchen appliances division. The expansion plan of the company into the Indian market is going to be spaced out over the next couple of years. 
