Philips decides to sell its audio-video business to Gibson Brands

Philips originally sold its Audio, Video, Multimedia and Accessories business to Funai Electronics last year, but the deal turned sour with Philips taking legal action against its partner claiming breach of contract.

Philips has struggled for years to compete with lower-cost Asian manufacturers, including Samsung Electronics and LG Electronics.

Recently Royal Philips announced it has signed an agreement regarding the sale of WOOX Innovations, its audio, video, multimedia and accessories business, to Gibson Brands, Inc. Under the terms, Gibson Brands will pay $135 million and a brand license fee, relating to a license agreement for an initial period of 7 years. The deal is expected to close in the second half of 2014, subject to customary conditions, including regulatory filings and works council procedures.

Philips started operations in India at Kolkata (Calcutta) in 1930. Established as "Philips Electrical Co. (India) Pvt Ltd", the company comprised a staff of 75 and was a sales outlet for Philips lamps imported from overseas.

In keeping with the Philips philosophy of promoting the industrial development of emerging economies, Philips India set up its first Indian lamp-manufacturing factory in 1938 in Kolkata.

Subsequently, Philips decided to produce radio receivers in India to make this product readily and widely available to the Indian consumer. In 1948, after the Second World War, Philips started manufacturing radios in Kolkata. The first valve-based Philips set was well received by the consumers. This was a major turning point for Philips India, and marked the beginning of the company's subsequent growth in the world of electronics.

In 1957, the company is converted into a public limited company, renamed "Philips India Ltd" and in 1959, a second radio factory is established near Pune.

In 1963, Philips invents the compact audio tape cassette and sets a global standard for tape recording that has never been altered since. India gets exposed to this Philips invention.

In 1965 (3 April), the millionth Philips radio is manufactured in India. In the same year Philips pioneers the concept of son-et-lumiere shows in India with the installation of such a lighting and electro-acoustic system at the Red Fort in Delhi.

In 1970 a new consumer electronics factory is started in Pimpri near Pune.

Come 1982, Philips brings colour television transmission to India with the supply of four outdoor broadcast vans to Doordarshan during the IX Asian Games. The company also completes a prestigious turnkey project by handling the lighting and electro-acoustic installations of stadia built specially for the IX Asian Games.

In 1983, Philips launches the Compact Disc and revolutionizes the way the world listens to music.

In 1985, Philips inaugurates its consumer electronics factory at Salt Lake, Kolkata.

1993 sees Philips launching its domestic appliance business in India and in 1995 Philips introduces compact fluorescent lamps into the country.

In 1996, the Philips Software Centre is established in Bangalore.

In 1998, Philips launches Flat Televisions and CD-recorders - both firsts in India.

As is seen, throughout the 1900's Philips continued to bring the Indian consumer new and innovative products backed by the latest technology and bearing the renowned Philips stamp of quality.