Philips bets on 15-20% turnover growth this year

The business of Dutch group Philips Electronics in Romania went up about 6% in 2003. The growth pace is expected to increase to 15%-20% this year.

“The total turnover in Romania for last year is estimated to be between 65 to 75 million euros. The exact comparison is difficult because part of the sales are done through import by non-Philips companies and as such not always controllable,” says Paul Hansen, Philips Romania general manager.

The figures mentioned by Hansen do not take into account the street lighting joint venture the Dutch producer is running with Elba in Timisoara.

Philips Electronics has four of its five product divisions worldwide present in Romania – consumer electronics, medical systems, domestic appliances & personal care and lighting. The only Philips division not operational in Romania is the semiconductors business.

“The consumer electronics and domestic appliances & personal care divisions were the fastest growing departments due to the development of the consumer lending,” Hansen explains.

The growth is believed to continue in the years to come, as well, Philips’ officials feel, once the digital product range sees a strong development in Romania, as well as in Europe.

“DVD players are selling better by the day, while LCD and plasma TVs and displays witness significant growth in sales. It is lagging a few years behind Western Europe, but the digital boom will show in Romania, as well as in the entire Eastern Europe,” says Toon Bouten, general manager of Philips’ Consumer Electronics division in Europe. Under the circumstances, Romania’s importance in the region will only become greater.

“Romania is the most important country within Philips Eastern Europe and as such Philips Romania has a lot of attention coming from the headquarters,” Hansen added.

The other division that accounts for a large share of the sales besides consumer electronics is the medical systems business. “This is the result of important contracts, which can have an important influence in the total figure,” Philips Romania official said.