India emerging as key hub in GE HealthCare’s global strategy: CEO Arduini

GE HealthCare operates a joint venture in India with Wipro Ltd, named Wipro GE Healthcare, in which it holds a 51% stake. Over its 30-year history, the India unit has invested approximately $4 billion, and intends to allocate another $1 billion by 2029.

“As a global supply chain, India is the top four countries for us, today. I think, in the future it could be moving to higher than that for sure… India is obviously a very, very important market in our supply chain, and it’s only going to continue to grow. The other part, on software development and product development, for access to value products, it’s going to continue to be a more important market for us in the future,” Arduini added.

Wipro GE Healthcare plans to inject ₹8,000 crore into manufacturing output, and research and development from internal accruals, with contributions from both partners. 

“The potential of the Indian market is huge, and the government’s production-linked incentive (PLI) scheme has also been of help. The investments will be made to add manufacturing capabilities in our Bengaluru units, since there is no plan to move beyond the city,” Chaitanya Sarawate, managing director, Wipro GE Healthcare, and president and chief executive, GE HealthCare South Asia, told Mint.

Currently, the company’s four manufacturing plants focus on exports. The most recent facility, with an investment of over ₹100 crore, began operations in March 2022, leveraging India’s PLI scheme. “Exports will continue to be our focus,” Sarwate added.

Wipro GE Healthcare produces over 30 products in India, exporting 45% of its output to around 70 countries.

Arduini said India’s growth potential and the company’s post-covid plans to diversify its supply chain are key factors driving the expansion of its local operations. “One is India is on track to be the third largest economy in the world… Two, with the changes in government and increase in (health) insurance (coverage) we’re seeing more covered care, and more stability, and the market is going to grow further.”

Then, there were entirely new challenges post-covid, with the pandemic teaching us us many lessons, one of which underscores the importance of supply chain resilience and proximity to manufacturing locations, he added.

“I don’t want to be dependent on one single country or one single supply chain. And so, India has the opportunity to benefit from both fronts—a growing local market and also a great place to have a global supply chain.”

India’s medical devices industry is poised for double-digit growth, driven by an increasing number of insured individuals. According to estimates, it will reach $50 billion by 2030, with a compound annual growth rate (CAGR) of 16.4%. In 2022, its estimated value stood at ₹90,000 crore ($11 billion), with a global market share of around 1.65%.

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Published: 26 Mar 2024, 07:43 PM IST