Dutch medical technology giant Royal Philips has significantly scaled up its operations in India, announcing that one out of two of its AI-enabled healthcare devices are now produced within the country. This strategic move underscores India's growing importance as a manufacturing and technology hub for the company's global strategy.
India: A Global Hub for Innovation and Production
Ozlem Fidanci, Chief of the International Region at Royal Philips, highlighted India's pivotal role not just in manufacturing, but also in product development. Over 80% of Philips' global software and digital solutions are developed in India, catering to both domestic and international markets. The company currently employs over 8,400 people in India, with approximately 5,000 based in Bengaluru, focusing on software and related technologies.
Philips has invested approximately €174 million in India over the last six years. These investments span manufacturing, research and development (R&D) centres, and capability hubs, including innovation centres in Bengaluru, manufacturing facilities in Pune, and capability centres in Chennai. The Pune facility is responsible for producing mobile surgery systems and MRI components, which are then exported to more than 100 countries worldwide.
Advancing Healthcare Resilience and Market Access
The company is also addressing supply chain challenges, particularly in MRI technology. Philips is developing and deploying MR solutions that significantly reduce or eliminate the need for helium, a scarce resource facing global constraints. These innovations aim to enhance healthcare resilience and reduce dependence on limited global supplies.
Philips is committed to a platform-led approach, integrating hardware, software, and data systems with advanced AI capabilities to deliver comprehensive healthcare solutions. India's burgeoning healthcare market, estimated at over $130 billion, is a key driver for this strategy.
Recognizing the uneven distribution of diagnostic infrastructure across India, Philips is actively focusing on expanding its presence in Tier-2 and Tier-3 cities. This initiative aims to improve access to healthcare technology and services beyond major metropolitan areas. The company has observed strong momentum across segments like diagnostic imaging, patient monitoring, and interventional therapies, and expects India to remain a crucial growth market for the foreseeable future.