NEW DELHI - The Wall Street Journal
General Electric Co. is accelerating its push into India, with Chief Executive Jeffrey Immelt on Friday unveiling a new structure that will bring all of GE's Indian health-care businesses into an existing joint venture with Indian technology giant Wipro Ltd.
"We want to accelerate our growth in India even more in the future," Mr. Immelt said at a press conference with Wipro Chairman Azim Premji. "India's health-care market is on the verge of substantial growth, not just in places like Delhi but throughout the country. We think this is an exceptionally good time to invest in India."
The two companies have had a joint venture to sell health-care products in India since 1990. Wipro GE Healthcare, in which GE holds 51% and Wipro 49%, already accounts for about 85% of GE Healthcare's sales in India. Added to the venture will be GE's other Indian health-care units, including GE Healthcare Life Sciences, GE Healthcare Medical Diagnostics and GE Medical Systems India.
Financial terms of what Mr. Immelt called a "simplification" of GE's Indian health-care portfolio weren't disclosed.
GE also plans to increase manufacturing of health-care products in India for both the domestic and export markets. Currently, Mr. Immelt said, about 25% of the health-care products the company sells in India are made in India; he intends for that to reach 50% to 75% within five to 10 years, he said.
The new Indian structure for the health-care business comes as Mr. Immelt pursues what he terms "reverse innovation" at the Fairfield, Conn., conglomerate. A recent article in Harvard Business Review, co-authored by Mr. Immelt, said GE is striving to change its U.S.-centric method of innovation by developing products in emerging markets such as India and China, then distributing them globally. "Success in developing countries is a prerequisite for continued vitality in developed ones," the article said.
Mr. Immelt on Friday said he expected health-care products developed in India to be exported to the rest of the world. "Some of these models and products have applicability in Europe and the U.S.," he said.
"We want to accelerate our growth in India even more in the future," Mr. Immelt said at a press conference with Wipro Chairman Azim Premji. "India's health-care market is on the verge of substantial growth, not just in places like Delhi but throughout the country. We think this is an exceptionally good time to invest in India."
The two companies have had a joint venture to sell health-care products in India since 1990. Wipro GE Healthcare, in which GE holds 51% and Wipro 49%, already accounts for about 85% of GE Healthcare's sales in India. Added to the venture will be GE's other Indian health-care units, including GE Healthcare Life Sciences, GE Healthcare Medical Diagnostics and GE Medical Systems India.
Financial terms of what Mr. Immelt called a "simplification" of GE's Indian health-care portfolio weren't disclosed.
GE also plans to increase manufacturing of health-care products in India for both the domestic and export markets. Currently, Mr. Immelt said, about 25% of the health-care products the company sells in India are made in India; he intends for that to reach 50% to 75% within five to 10 years, he said.
The new Indian structure for the health-care business comes as Mr. Immelt pursues what he terms "reverse innovation" at the Fairfield, Conn., conglomerate. A recent article in Harvard Business Review, co-authored by Mr. Immelt, said GE is striving to change its U.S.-centric method of innovation by developing products in emerging markets such as India and China, then distributing them globally. "Success in developing countries is a prerequisite for continued vitality in developed ones," the article said.
Mr. Immelt on Friday said he expected health-care products developed in India to be exported to the rest of the world. "Some of these models and products have applicability in Europe and the U.S.," he said.
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