Investment

Poly Medicure to Pump in Rs 100 crore by 2013

The company is also foraying into diagnostics

New Delhi-based Poly Medicure Pvt Ltd, manufacturer and supplier of medical devices and disposables, is planning to invest Rs 100 crore by 2013. The company currently has almost 75 per cent of its total Rs 135 crore revenue from exporting products to more than 80 countries, including the US and Europe. "This is to increase our presence in global market and to explore the potential of outsourcing market, said Rishi Baid, Executive Director, Poly Medicure Ltd. The company is also mulling on acquiring a medical devices company with research and development focus in the US and Europe in near future.

"In the next three to five years, our focus will be on safety medical devices market. We are expecting our revenues to grow from Rs 135 crore to over Rs 300 crore by 2013," Baid added. The company is targeting a growth of over 30 per cent for the financial year 2010-2011. Focusing on capacity expansion of the existing manufacturing facilities, this year, the company also plans to set up a manufacturing facility - probably through a tie up - in South America in next one or two years.

At present, it has two overseas manufacturing facilities - one under a Joint Venture in Egypt and another 100 per cent subsidiary in China and it maintains four manufacturing plants in India - one in Jaipur, two in Faridabad and one in Haridwar. Further, a new manufacturing plant is planned to be set up in Jaipur to develop unique safety device products, for which the works will be initiated in 2011 and expected to complete in March 2012. "However, the Indian medical devices companies are in a better position to explore the emerging outsourcing potential with its skills and cost advantage. Indian companies can offer products in regulated market in much less price than the products manufactured there. The recent victory in the German court over the medical devices major B Braun in the IP related dispute has catalysed our urge to grow globally," he added.

Poly Medicure is currently operating on selected medical devices and disposables segment, which has a potential up to Rs 1000 crore in India and currently has five per cent market share. Through the capacity expansion, the company is targeting to bag 10 per cent of the market share by 2013.

The company is foraying into diagnostics. It plans to tap the domestic and international market in a big way with their state-of-the-art technology and quality products. An amount of Rs 5 crore is the proposed investment by Polymed for the diagnostic division in next two years and the products in focus will be blood collection tubes, needles and lab disposables.

The Indian diagnostics and pathology testing market is valued near to Rs 4500 crore in 2008 and is growing at 20 per cent per annum. A laboratory test reflects an indicator of state of the patient's health, in turn allowing diagnosis and management of disease. For every blood specimen approx, five blood collection tubes are needed. Currently, the market for tubes (blood collection tube) is 50 Crore tubes which is expected to double i.e. 100 Crore in next three years.

Says Himanshu Baid, MD, Polymed, "Various factors such as rising prevalence of diseases, improving affordability of patients and increasing penetration of health insurance have contributed substantially to spur demand for diagnostic services in the country. Another important factor is the emergence of India as an outsourcing hub for clinical trials and research and development activities of global pharmaceutical companies leading to an increased demand for these services. For Polymed it will be a new venture and we are high on hopes of making it a success globally very soon. We are targeting a market share of 10-15 per cent in the domestic diagnostics and pathology testing market that is estimated at Rs 5,500 crore."

Poly Medicure has set up a plant to manufacture 5 Crore blood collection tubes per annum to cater to this growing demand. It has already started a new division with 10 persons in 2009 and will add another 15 persons in sales and marketing within next six months all over India. For export sales, the company is tying up with existing network of dealers and distributors. It expects a revenue of approx Rs 20 crore from this division in 2012. Poly Medicure Ltd will also be spending Rs 50 crore in next two years to expand manufacturing capacities in existing plants and setup a new plant in Jaipur - SEZ.

Polymed will invest close to Rs 25 crore to increase manufacturing capacity of medical devices from 30 crore to 40 crore. The company will invest Rs 25 crore to set up a new plant in Jaipur SEZ to manufacture state of the art medical devices with a capacity of 7.5 crore pieces which will be exported to European countries.

EH News Bureau