Bangalore: Nineteen years after Wipro Ltd and GE Healthcare struck a partnership, later forming a joint venture called Wipro GE Healthcare Pvt. Ltd, the parent companies are integrating the different business units and manufacturing plants in India for better management, resource utilization and rapid growth.
Better management: GE chief executive Jeffrey Immelt. Mustafa Quraishi / AP
GE Healthcare is a part of the US-based General Electric Co., or GE.
Wipro GE Healthcare, which distributes around 85% of GE Healthcare products in India, said on Friday it will absorb three business units of GE Healthcare—GE Medical Systems India, GE Healthcare Life Sciences and GE Healthcare Medical Diagnostics, of which the latter two distribute their products outside Wipro-GE.
Another business unit, GE-BEL, an export-oriented joint venture between GE Medical Systems and Bharat Electronics Ltd that operates a medical equipment component manufacturing plant, will remain outside the integrated entity, said V. Raja, president and chief executive of Wipro GE.
Raja will continue to lead the expanded business entity, which will have 1,200 employees from the three GE Healthcare units. The integrated Wipro GE will now run manufacturing plants at two locations in Bangalore.
After the completion of the integration, which could take 6-12 months depending on regulatory approvals, Wipro GE will be the exclusive vehicle for GE Healthcare’s activities in India. Wipro holds a 49% stake in the joint venture, according to its annual report.
GE chief executive Jeffrey Immelt, who is currently visiting India, said that in five years, 50-75% of GE Healthcare products would be made in India.
In July, GE had said it would invest $6 billion (Rs28,740 crore) globally over the next six years in the healthcare sector on services, partnerships and research and development.
GE’s healthcare revenue in India is around $500 million and the company expects to double it in three-five years. With a compounded annual growth rate of 25-30%, which is double the average healthcare market growth rate in India, Raja says Wipro GE will now be more aggressive, both in investment and innovation.
The expanded Indian entity will continue to serve South Asian markets, particularly Sri Lanka, Bangladesh, Nepal and neighbouring countries.