Philips eyes medical device buys, to take time

BANGALORE (Reuters) - Dutch group Philips Electronics has identified acquisition targets for its key medical devices division, but it is likely to take some time, its chief executive said on Monday.

"We have made smaller acquisitions in the recent past and are looking for larger acquisitions," Gerard Kleisterlee, who was on a visit to India's tech capital, told reporters at a news conference.

"We have a number of targets identified, it will take time. We will do our statistics at maximum speed possible from our side."

He also said the company would use a combination of internal growth and acquisitions to reach its revenue targets for its domestic appliances business.

The company, which started a new consumer health unit last year as part of its domestic appliances business, had set a sales target of one billion euros within three years.

"We have made good progress in identifying areas in which we want to play and in identifying some areas that we can build from our own strength and the existing portfolio," he said.

He said the company continued to look for acquisitions as well for this division.

The electrical goods conglomerate, which is also the world's biggest lighting maker, is refocusing the company on higher-margin businesses such as medical systems, lighting and domestic appliances and away from consumer electronics and electronic chips.

Kleisterlee said Philips' revenue in India grew 16-17 percent in 2004, with TVs, DVDs and medical systems as drivers, and said a rate of 15-25 percent would be good growth in the coming years.

He said the company was aiming for annual revenue of 50 billion rupees (US$1 billion) by 2008 in India, from 20 billion now.