Philips, Domestic Appliances India Limited a Dutch consumer electronics company, announced today that it plans to make India an innovation hub and develop more locally relevant products, particularly in the domestic appliances segment. The company, which acquired Chennai-based kitchen appliances firm Preethi in January this year, stated that it is looking to leverage local technology as it looks to contribute 40% of global revenues by 2015, up from 34% currently. "India has now joined the important global string." "The acquisition has assisted us in having an innovation hub that will connect globally to bring a lot more Indian relevant solutions and also leverage India as an integral part of the global R&D in building platforms," said Murali Sivaraman, General Manager of Consumer Lifestyle (Domestic Appliances) at Philips.

He stated that the domestic appliances business is an important category for driving growth in emerging markets and that the company will take an inorganic approach to bring in local innovation and leverage local technology. "What we do is acquire certain technologies and try to leverage them around the world." "Technology will be a standardized platform that complements one another," Sivaraman explained.

These steps are part of the company's plan to increase sales in emerging markets by offering more locally tailored products. "We're organizing ourselves to be locally relevant and shape the market by enticing consumers with so many things to buy and take home." As a global player, leveraging Philips' physical presence in these (emerging) markets and bringing more innovations, locally relevant solutions, and making it more accessible at lower price points is a priority for him, he said. When it purchased Preethi, the company stated that the acquisition was part of its plan to "drive local innovation, including further expanding its industrial and commercial footprint in emerging markets." According to Sivaraman, the Preethi acquisition provided Philips with a strong channel presence as well as a manufacturing base for its kitchen appliances.