Wipro GE Healthcare aims to produce around 70% of its product for the Indian market domestically by 2030 and significantly increase its exports beyond India
Wipro GE Healthcare is eyeing to boost manufacturing in India and promote exports. The 35-year-old joint venture between GE Healthcare and Wipro Enterprises has rolled out a $1 billion expansion plan to increase production to up its domestic manufacturing business, according to the Mint.
“Our anticipation is that by the end of this period, we will reach somewhere in the vicinity of 70% locally procured, locally manufactured products to meet the Indian market requirement,” MD of Wipro GE Healthcare, Chaitanya Sarawate, told the Mint.
Wipro GE Healthcare had announced plans to invest Rs 8,000 crore ($933 million) in India in March 2024.
The healthcare company aims to produce around 70% of its product for the Indian market domestically by 2030 and significantly increase its exports beyond India. The 35-year-old company exports medical devices to around 70 countries, including the US.
The company plans to strengthen its supplier ecosystem in India over the coming five years. As a part of this investment strategy, it will focus on the production of devices like PET/CT scanners called Discover IQ, different types of CT scanners and MR breast coils.
This increased focus on manufacturing in India by the company is also brewing at a time when the size of the Indian medical devices market is projected to grow at a 16.4% CAGR from $ 11 billion in 2022 to $ 50 billion by 2030, according to the India Brand Equity Foundation (IBEF) report. Similarly, the diagnostic equipment market is projected to increase from $ 4 billion in calendar year 2023 to $ 6 billion by CY27. The enhanced focus is also likely to bridge the gap between the demand and supply of devices in India and reduce import dependence. According to IBEF, India’s current import dependence for medical devices ranges between 70-80%.
This is coupled with the Government’s support to boost domestic manufacturing via its production-linked incentive scheme (PLI) for 14 sectors, including 44 high-end medical devices like linear accelerator, MRI machines, CT-Scans, mammograms, C-Arms, ultrasound machines etc.