| GE Sets Goal: US$8 Billion in Revenues and US$8 Billion in Assets in India by 2010 |
“We have been privileged to play a pioneering role in this market. India is now on the cusp of a new growth cycle - a dynamic transition to a 21st century marketplace where we want to grow our business.”
General Electric Company Chairman and CEO Jeff Immelt today announced a US$250 million investment in infrastructure and healthcare projects in India and said that GE intends to dramatically expand its industrial and financial presence in the country.
Speaking to the Bombay Chamber of Commerce and Industry, Immelt said, "India is a market set to realize its potential. The next ten years are critically important for India in terms of infrastructure and economic development as the country progresses toward becoming one of the largest economies in the world. Success will require depth in areas where GE excels: infrastructure and technology."
Infrastructure projects are at the top of GE's agenda in India. In November 2005, GE announced it was reinvesting all of its proceeds from settlement of the Dabhol power project - valued at US$145 million - in Indian infrastructure projects and in equity stakes of projects sponsored by GE's strategic customers. Today, Immelt announced that GE is adding another $100 million to this GE India Development Fund.
Infrastructure
GE will invest the Development Fund in technological solutions to help India address its most pressing needs. These funds will be invested in:
-- Healthcare: GE will be a partner in Dr. Naresh Trehan's Medicity project, a world-class Integrated Healthcare Facility in New Delhi. Beyond financial investment, GE will also provide end-to-end early disease prediction, diagnosis and monitoring tools like advanced medical diagnostics, Cathlabs, anaesthesia systems and partner in clinical research and education programs.
GE Healthcare is focusing on educating and implementing an early health model, while developing and introducing new products designed to meet specific Indian needs - delivering easier, earlier and more accurate care in locations with limited access to hospitals.
-- Cleaner Energy: GE is already involved in several energy projects in India and will invest in additional projects to help meet India's massive power needs. GE's cleaner coal technology, Integrated Gasification Combined-Cycle (IGCC), is particularly suited for India where low-cost opportunity feedstocks such as coal, heavy oils and pet coke are the fuels of choice. GE also hopes to work with India on nuclear energy technologies designed to meet growing energy demand, subject to ratification by the U.S. Congress. GE is working with the National Thermal Power Corporation (NTPC) to help restart Ratnagiri Gas and Power Pvt Ltd.; is partnering with Bharat Heavy Electricals Limited (BHEL), to provide technology support and customer training for GE's heavy-duty gas turbines; and is supporting NTPC's new projects.
-- Clean Water: GE will help India address its growing need for clean water in urban and industrial areas. The biggest opportunities for growth lie in providing technology to help municipalities create fresh drinking water and helping India's rapidly growing infrastructure-driven steel, petro-chemicals and power industries reuse water for its operations.
-- Aviation: Commercial aviation remains one of GE's fastest growing businesses in India, with commercial engine orders from Air India, Indian and Jet Airways worth nearly US$3 billion. GE Commercial Aviation Services currently has more than US$500 million invested in India and another US$500 million committed. Additional projects will focus on airline customers' maintenance and overhaul requirements.
Financial Services
Immelt also detailed the company's significant new financial services goals. "GE is bullish about the financial services sector in India and will invest as appropriate to grow its commercial and consumer financial services businesses," Immelt said. "We remain interested in entering the banking sector in India, in line with Reserve Bank of India guidelines."
Already a substantial real estate investor throughout Asia, GE is targeting India as one of the most attractive opportunities, having entered the country a year ago through a joint venture with the developer Ascendas.
GE also provides leasing and equipment financing in high-growth sectors such as construction, transportation, healthcare and information technology, and looks to substantially grow its portfolio by two-to-three times in the next three years.
India's rapidly growing economy requires significant additional power generation capacity and new water infrastructure, providing opportunities for financial investment by GE's Energy Financial Services unit.
GE Consumer Finance - known to consumers as "GE Money" - aims to double its revenue by 2010, continuing to invest aggressively in credit cards, home loans, personal loans, and life insurance. With its partner, State Bank of India, GE is a leading provider of credit cards, with over 2.5 million customers, offering products such as the historic Indian Railways Card and the first loyalty co-branded card with the TATA Group. The company also plans to add 250 new GE Money retail branches over the next three years.
"In India, for India"
GE investments will lead to future phases of co-operation where research, design, financing, and service will take place locally in India, by Indians and for the Indian market.
GE is focusing on developing new products designed to meet specific Indian needs. For example, the "HF Advantage" X-ray system was developed at the John F. Welch Technology Centre in Bangalore. The HF Advantage is an affordable, general radiographic system providing outstanding image quality and diagnostic precision, while creating a safer imaging environment for patients and doctors with lower radiation doses. Another example is a hybrid technology model developed at the GE Global Research Center in Bangalore, which combines various forms of renewable energy to provide customized power solutions based on availability of local fuel resources. This is being used in GE's Rural Electrification Program in India.
The John F. Welch Technology Centre - a US$80 million state-of-the-art facility that is home to 2,200 scientists, researchers and engineers - is uniquely positioned to help GE realize this goal. "We are privileged to have a terrific pool of scientists and technologists and we plan to unleash their talent for the benefit of India and GE in India," Immelt said.
"GE has been doing business in India for more than 100 years," Immelt said. "We have been privileged to play a pioneering role in this market. India is now on the cusp of a new growth cycle - a dynamic transition to a 21st century marketplace where we want to grow our business."
Immelt stressed the company's goals are firmly aligned with India's objectives.
"Improving quality of life - through education, healthcare, and improved water availability - while stimulating economic growth with power generation, energy independence, transportation and agriculture reform, is the right path and righteous path," Immelt concluded. "We are pleased to join India at the threshold of increased economic progress."
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com
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