In the wake of its divorce from Lucent Technologies, Philips' consumer business has dropped plans to set up a telecomms equipment plant in India.
Philips Consumer Communications is now a 100 per cent subsidiary of the Dutch giant, since it ended its joint venture with Lucent last September.
"We revaluated our business plan for India after the separation," said Sanjay Nischal, head of PCC in India.
Nischal said that Philips will continue to target Indian users with its communications products. "PCC in India will be launching at least three new GSM products in the next calendar year. This will range from low priced models to premium ranges like Genie," Nischal said.
"At present, PCC has a 30 per cent stake in the organised handset market in India and we propose to maintain the share with new launches," he went on.
To support the new direction, PCC will reorganise its pager business, which has failed to meet expectations. "The pager business has not really picked up as expected and we need to restructure our focus on the product. We are working on the statistics and seeing the development in the telecomms sector," said Nischal.
Nischal said that PCC decided this week to scrap the factory project. "We found that it would be difficult for us to compete with the local players on price. There is no way we were able to manufacture our products at $12.50 per unit. So we decided to discontinue the project for the time being."
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