Wipro GE Healthcare, the joint venture between Wipro Ltd and GE Healthcare, has integrated several existing stand-alone business units and manufacturing plants of GE Healthcare in India under the Wipro GE Healthcare entity.
The strategic move will lead to more effective management and resource utilization and help accelerate growth for GE Healthcare, the US$17 billion healthcare business of General Electric Company through Wipro GE Healthcare's large distribution network. GE will hold a 51 per cent stake and in Wipro GE Healthcare and 49 per cent will be with Wipro.
Currently Wipro GE Healthcare distributes approximately 85 per cent of GE Healthcare's products and solutions in India. The GE Healthcare business units that will be integrated into Wipro GE Healthcare include GE Healthcare Life Sciences, GE Healthcare Medical Diagnostics and GE Medical Systems India. GE Healthcare's Life Sciences and Medical Diagnostics business units currently distribute their products outside of Wipro GE Healthcare. GE Medical Systems India manufactures X-ray products and certain other diagnostic imaging products & accessories for export to GE Healthcare worldwide. When this integration is completed, Wipro GE Healthcare will be the exclusive vehicle for GE Healthcare's activities in India.
According to John Dineen, president & CEO, GE Healthcare, this is a natural next step for the successful partnership we have had with Wipro in India. Simplifying our company structure will improve service for our customers and has the potential to accelerate the introduction of more cost effective, affordable and quality healthcare solutions in South Asia.
Wipro GE Healthcare is one of the leading players in healthcare solutions in India and one of the longest partnerships in the history of GE Healthcare. V Raja, current president and CEO of Wipro GE Healthcare will continue to lead the expanded business entity. 1200 employees from the three GE Healthcare entities being consolidated will become part of the expanded Wipro GE Healthcare.
"GE has been our valued partner since 1990. Together we have defined many growth stories in healthcare sector in South Asia. This consolidation under Wipro GE Healthcare further strengthens this relationship. We hope to bring world-class healthcare to South Asia by providing best- in- class solutions," said Azim Premji, chairman, Wipro.