Updated on 19 October 2012
Over the past 2 years, we have grown in China at a CAGR of over 20 percent, and, apart from Shanghai and Beijing, we continue to expand our presence in other areas such as Guangzhou, Wuhan and Shenyang. We understand the growing business opportunities for our environmental instruments business in this region and we moved the headquarters of this business to China several years ago.
With the changing population demographics in the region, healthcare and diagnostics also offer some exciting opportunities. We would like to replicate our successes in India and China in some new emerging markets such as Korea, Brazil and Russia.
China and India recorded growth of 20 percent in 2011. How are you contributing towards the growth of the market in these two countries?
Apart from what I have just mentioned, we are investing in establishing partnerships with our key customers in India and offer them complete work flow solutions through our entire width and depth of technology and services. As more and more our global customers invest in India, they will require the same standardized technology that they are using in other locations. Pharmaceuticals, biotechnology and healthcare are exciting markets for us here in India.
We are currently setting up a new manufacturing facility for our lab products at Suzhou that will enable us to respond to APAC-based customers faster and more efficiently. We have also invested in other manufacturing operations, demo centers and a technology center at Shanghai. Today, 20 percent of our revenues in China come from products that we are manufacturing in China.
What new packages and additional services are you offering to customers, in the domains that the company has been witnessing fall in the revenue growth in last couple of years?
Looking at the end markets, we are indeed very balanced as nearly a quarter of our revenues come from each of our major market segments - pharmaceuticals and biotechnology, healthcare and diagnostics, industrial and applied and academic and government. This, combined with our unique product mix spanning instruments, equipments, consumables, reagents and chemicals, software and services gives us an industry-leading position in most markets that we serve.
An important part of our growth strategy is to increase our presence in Asia Pacific and Emerging Markets. At the time of our merger in 2006 that created Thermo Fisher Scientific, only 10 percent of our revenue came from Asia Pacific and emerging markets. Today it is 20 percent and in five years we expect it to be at least 25 percent. Our tremendous success in China, India and other parts of these exciting markets has shown that we have a proven strategy.