Wipro GE Healthcare launches $1 billion expansion plan; confidence in avoiding the impact of countdown U.S. tariffs
Wipro GE Healthcare, a 35-year-old joint venture between GE Healthcare and Wipro Enterprises, has begun developing its $1 billion investment plan to expand India’s manufacturing and boost exports, and is convinced that it can avoid the impact of possible reciprocal tariffs imposed by the U.S. on India’s Medtech industry.
An executive said the company expects to produce about 70% of its products in the Indian market by 2030, compared with 40-45% now.
Chaitanya Sarawate, managing director of Wipro Ge Healthcare, told Neld that by the end of this period, we will reach 70% of the products we purchase locally, locally manufactured to meet the needs of the Indian market. ” Mint In the interview.
The company also hopes to expand exports to India. Wipro GE Healthcare exports medical equipment to approximately 70 countries, with the largest market in the United States being Europe.
“We fully expect India’s manufacturing plants will offer more countries. So our plan is very ambitious,” he said.
U.S. President Donald Trump said he would impose reciprocal tariffs on imports from India. Meanwhile, the Indian government is said to be considering cutting import tariffs on medical equipment, which has concerns domestic manufacturers.
However, Wipro GE Healthcare will not expect any significant impact to these shifts. Its diversified supply chains and global operations have kept it relatively isolated from geopolitical uncertainty.
“From GE Healthcare’s perspective, they have a very diverse supply chain in different countries…so it’s too complicated to know how the tariff regime can ensure that all needs are met,” Saravat said.
In India, the company has an established local supply chain for manufacturing and procurement of components.
Invest $1 billion
The company said in March 2024 that it would invest $1 billion to expand India’s development and manufacturing footprint. Investing in launches this year begins with a focus on expanding capabilities, as well as technical expertise and R&D.
“[That expansion] In terms of the footprint of the engineering we have here and the manufacturing facilities being built, it’s just begun. ”
Wipro GE Healthcare, which has four factories in Karnataka, is searching for another facility to increase capacity. The company produces high-tech medical devices such as ultrasound machines, MRIS and CT scanners, as well as anesthesia machines and patient monitors.
Currently, most of such high-tech equipment has been imported to India. About 80-85% of medical equipment in India are imported in FY24. Wipro GE plans to reduce import dependence.
Sharat said the company is a leader in the country’s MedTech field and has a “lien share” in the market. Even if it enters a new domestic competitor, it has the confidence to maintain its position.
Startups such as Healthium and HRS Navigation are more focused on exporting to other markets, as the domestic market is still largely dominated by multinational companies, Mint Earlier reported.
However, as demand rises, Sarawate said the market is large enough to require a wide variety of players. According to EY consulting firm EY, India’s MedTech industry is expected to expand at a complex annual growth rate of 20-23% over the next five years. The increasing demand is a key headwind.
“In India, the demand is because more and more people are becoming insured,” Sarawat said.
In addition, policy promotions, such as the National Medical Equipment Policy in 2023 or MedTech’s production link incentive program, have improved capabilities.
