Philips India generated around Rs 6,000 crore revenue in FY24,according to the Philips annual report, with its healthcare business—including diagnostics, hospital equipment, and innovation services—accounting for the bulk of this. Philips India also contributes over 12% to Royal Philips’ global workforce. In an interview with Business Today, Bharath Sesha, Managing Director for the Indian subcontinent, talks about how the India arm is collaborating with the government on digital health IDs and electronic health records to track a patient’s history and offer personalised care. Edited excerpts:
Q: What kind of capital investments is Philips planning for the Indian market, and which product categories are driving growth at present?
A: While it is slightly premature to share precise capital expenditure figures, I can outline what has been committed till now. We inaugurated our innovation campus in Bengaluru in November 2023, which focuses on artificial intelligence (AI)-driven healthcare solutions. In addition, we commenced construction of a new Healthcare Innovation Centre in Pune last year. It is expected to be operational by next year. These investments total approximately Rs 700–800 crore and will have around 2,000 professionals dedicated to innovation.
These initiatives in India span research and development, manufacturing, and sourcing. For instance, our global manufacturing site in Pune produces medical equipment for over 100 countries. It is currently the only location within Philips’ global network manufacturing these specific products.
Looking ahead, we aim to strengthen this ecosystem. While additional allocations are yet to be finalised, sustained investment in research, development, and innovation remains a key priority.
From a business perspective, our health-tech portfolio is the current growth driver. The personal health segment is also growing steadily — we recently launched an AI-powered shaver in India, catering to rising consumer demand for smart health and wellness products, connected personal care solutions. With increasing awareness around preventative care and digital health, we anticipate outperforming the broader market in both segments.
Q: Going forward, what are your plans? What kind of revenue growth mix are you targeting? How is the Indian market performing, and what is on the road map?
A: Our plans are shaped by key healthcare trends in India and globally. These include rising staff burnout, underutilised healthcare data, and the need for strong partnerships to improve outcomes.
In India, we are leveraging our ecosystem across research and development, manufacturing, and service delivery. We currently employ around 9,000 people in Bengaluru, Pune, Chennai, and Gurugram, working across software engineering, AI development, global manufacturing, and operations.
One major focus is improving staff efficiency and reducing burnout, especially among nurses and clinicians. We have studied hospital workflows to develop systems that reduce time spent on administrative or repetitive tasks. In intensive care units, for instance, nurses often monitor multiple patients simultaneously. Our technologies highlight only exceptions or critical alerts, enabling staff to prioritise care over manual data entry. We are also applying AI in imaging, particularly MRI, to reduce scan times and improve quality. AI tools now correct for motion artifacts and minimise repeat scans, reducing overall duration from 45 minutes to 20–25 minutes in many cases.
We continue to expand digital solutions such as remote diagnostics and telehealth—crucial for underserved areas. Our focus remains on delivering innovations that ease clinical workloads and improve patient outcomes. Our investments will reinforce these goals both in India and globally.
Q: What are some of the key trends you are observing in med-tech or healthcare in India?
A: Three major shifts are reshaping India’s healthcare and med-tech landscape. The first is the need to do more with existing assets. India boasts highly skilled clinicians, but there is a gap in timely and accurate diagnoses. This can be addressed by investing in new equipment and improving utilisation of existing infrastructure. Artificial intelligence is pivotal here. Five more scans per day with the same machine delivers a higher return on investment. Thus, innovation is increasingly about smarter utilisation, not just capital spending.
The second shift is the transition of care from hospitals to home settings . For instance, after a total knee replacement, a patient can wear sensors that send real-time data—step count, physiotherapy compliance, and even fall alerts—to the hospital via smartphone. This extends meaningful care beyond hospital walls.
The third shift is the use of technology to address staff shortages in Tier II and III cities. One solution is our remote operations control centre, where expert radiologists in metropolitan areas guide technicians in smaller towns, assisting with scan optimisation, positioning, and interpretation in real-time.
Q: How is Philips using AI in healthcare, and where does human judgement fit in?
A: AI is a powerful tool, but it must remain an enabler, not a replacement, for clinical judgement. It analyses large data sets, flags anomalies, and suggests potential diagnoses, but the final decisions must always rest with doctors.
A case in point is digital pathology. AI enables high-resolution slide scans that specialists can access online or remotely, reducing the strain and delays of traditional microscopy. This has helped clinicians avoid musculoskeletal conditions like cervical spondylosis caused by long hours at microscopes.
Q: What are the key therapy areas Philips is currently focusing on, and how are your latest innovations and product launches aligned with these priorities?
A: We are concentrating on three high-impact areas: Ischemic stroke care, cardiac ultrasound, and non-invasive cancer diagnostics.
In stroke care, we have launched the Azurion 3.0 Cath Lab system in India. Previously used mainly for cardiac procedures, it is gaining traction for neuro interventions. We are also piloting a direct-to-angio-suit approach—bypassing CT or MRI for eligible stroke patients to reduce treatment delays. In cardiac ultrasound, we have upgraded our transcend platform with AI to improve diagnoses of structural heart diseases. For end-stage renal disease patients who cannot undergo contrast imaging, we now combine MRI and ultrasound for contrast-free, safer diagnostics. We are training 300 doctors in India on this protocol.
We also collaborate globally with start-ups offering API- or app-based innovations that integrate with our artificial intelligence platforms. In India, we work closely with hospital chains to co-create solutions that enhance workflows and patient experiences. While both organic and inorganic growth are on the table, India offers significant scope for organic expansion. We will continue investing in capabilities and partnerships to meet the healthcare sector’s evolving needs.
Q: As more cost-efficient players enter the healthcare space, how does Philips plan to stay competitive while continuing to innovate and bring care closer to the patient?
A: While many new players offer cost-efficient solutions, we focus on delivering value through innovation, not simply price competition.
We offer an integrated ecosystem, supporting partners across the care continuum from workflow design to patient engagement. For example, our SmartSpeed MRI technology improves image quality and scan speed. Performing five extra scans per day with the same machine delivers a better return on investment than reducing upfront cost.
We aim to improve workflow, patient experience, and clinical outcomes—not just sell devices. That is how we help hospitals boost productivity and maintain cost-efficiency without compromising quality.
We are also aligned with the Make in India initiative. We are not only manufacturing in Pune, Baddi, and Silvassa, but developing innovations here as well. Our research and development centre in Bengaluru is producing solutions for both local and global markets.
Q: How is Philips tapping into Tier II and Tier III cities while addressing the unique demands of these price-sensitive regions?
A: These cities offer significant potential, particularly as entrepreneurial doctors set up and expand healthcare facilities. Their needs differ from large hospital chains, so our approach is tailored.
We support them in three ways. First, we guide them in selecting scalable technology, ensuring, for example, that MRI equipment can support their growth from 50 to 100 beds. Second, through Philips Capital, we provide financing options that ease upfront investment burdens.
Third, we offer fit-for-purpose products like the Zenition 90 motorised mobile surgery unit, which serves as a more affordable alternative to conventional Cath labs, and artificial intelligence-enabled ultrasound machines that simplify use.
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