Philips Electronics made more than 60 million euro turnover in Romania last year, which accounts for 20% growth in general, compared with 2001. And the growth pace is expected to pick up this year.
"The Romanian economy grew last year and will continue to grow this year, according to the Government estimates and this is what really matters. Under the circumstances, we anticipate at least 25% growth this year. After all, Philips' business in Romania, like the Romanian economy, has no other solution but to grow," Paul Hansen, Philips Romania CEO told Ziarul Financiar. He said the gap between the Western European countries and part of those in the Eastern Europe, such as Romania, was narrowing.
"Romania has the advantage of skipping several development stages, which allows it to catch up with Western Europe," Hansen says.
Philips Electronics in Romania operates directly in four of its five Product Divisions: Consumer Electronics, Medical Systems, Domestic Appliances and Personal Care products and Lighting. The only Product Division not represented locally is the Semiconductors Division.
But not all products within a Product Division are sold in Romania.
"For example we do not sell directly GSM phones in Romania. There is a huge competition in this area and we only want to bring products on the market when we expect to be one of the main players in the field. We don't want to be just another player on an already crowded market," Hansen added.
Philips' most important businesses are the Consumer Electronics and Medical Systems divisions.
"The Consumer Electronics division has been posting growth every year. One of the main products in this division, the TV sets have a high penetration rate in Romania, while the high-end products, either electronics or home appliances, have a high growth potential," the Philips Romania representative feels.
Medical equipment is yet another story. "Whereas it is easier to make an estimate for Consumer Electronics, the Medical Systems are largely dependent on the funds allotted by the Heath Ministry and by the Government for providing equipment to the hospitals in Romania. The growth potential here is even higher, because the healthcare system in Romania still has a long way to go before catching up with those in Western Europe," Paul Hansen said.
As for the Lighting Division, the Dutch group teamed up with Elba for a joint-venture in Timisoara, Philips Elba Street Lighting.
The street and industrial lighting products are sold both on the domestic market and in the neighbouring countries.
Philips has also been producing latest generation DECT (Digital Cordless) phones at Solectron in Timisoara for several years, with several million units made so far. All the phones manufactured here used to be exported, but the plan is to sell these Romanian-made products also in Romania.
"If they sell in Western and Central Europe, why wouldn't they sell in Romania, too?" Hansen says.
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