News: Philips India’s unhurt by chip sale
(DNA 05/08/2006) Mumbai - The decision of the Amsterdam-based consumer electronics giant, Philips, to exit the semiconductor business is not likely to have much impact on its Indian operations.
Of the recorded revenues of Rs 2,860 crore for the year ending December 31, 2005 of the Indian operations, the semiconductor business contributed only about Rs 11 crore. Also, no jobs cuts are expected.
On Friday, Royal Philips Electronics said a consortium of private equity funds like Kohlberg Kravis Roberts & Co (KKR), Silver Lake Partners and AlpInvest Partners NV would acquire an 80.1% stake in its semiconductors business, at an enterprise valuation of 8.4 billion euro.
Of Philips’ 30.4 billion euro global revenues, the semiconductor business was worth 4.6 billion euros.
It is a supplier of silicon system solutions for mobile communications, consumer electronics, digital displays, contactless payment and connectivity, and in-car entertainment and networking.
The division has 37,000 employees worldwide. In India, there are no semiconductor manufacturing facility the people employed are in sales and research & development. Philips calls the business as “indenting business”.
The sale follows Philips exiting the business to focus on healthcare and lifestyle products.
In 2004, it had sold its display manufacturing division, which manufactured computer monitors, to Taiwan-based TPV Technology. For Philips India, the consumer appliance division is its largest, notching revenues of about Rs 1,100 crore.
Of the recorded revenues of Rs 2,860 crore for the year ending December 31, 2005 of the Indian operations, the semiconductor business contributed only about Rs 11 crore. Also, no jobs cuts are expected.
On Friday, Royal Philips Electronics said a consortium of private equity funds like Kohlberg Kravis Roberts & Co (KKR), Silver Lake Partners and AlpInvest Partners NV would acquire an 80.1% stake in its semiconductors business, at an enterprise valuation of 8.4 billion euro.
Of Philips’ 30.4 billion euro global revenues, the semiconductor business was worth 4.6 billion euros.
It is a supplier of silicon system solutions for mobile communications, consumer electronics, digital displays, contactless payment and connectivity, and in-car entertainment and networking.
The division has 37,000 employees worldwide. In India, there are no semiconductor manufacturing facility the people employed are in sales and research & development. Philips calls the business as “indenting business”.
The sale follows Philips exiting the business to focus on healthcare and lifestyle products.
In 2004, it had sold its display manufacturing division, which manufactured computer monitors, to Taiwan-based TPV Technology. For Philips India, the consumer appliance division is its largest, notching revenues of about Rs 1,100 crore.
posted by InCar Group Press Room at 11:14
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