 "Transasia Bio-Medicals to launch IPO to fund growth plans")
Transasia Bio-Medicals, the largest Indian manufacturer of medical devices, plans to go for an initial public offering (IPO) in the next 12-24 months to fund growth. The company, with annual revenue of Rs 1,000 crore, is promoted by Suresh Vazirani who founded it in 1979.
“We have plans to grow our presence, as the demand for medical devices is on the rise. We plan to go public within the next two years to raise capital,” said Vazirani, managing director.
The Mumbai-headquartered firm offers gamut of products and services across sectors such as biochemistry, hematology, immunology, critical care and diabetes management. It has three manufacturing plants, at Daman, Mumbai and Baddi. Vazirani said operations are profitable, with business growing at 25 per cent annually. “We have a presence outside India, too, but the Indian market is growing faster.”
Currently, only a handful of medical devices firms are listed in the Indian stock market. Some of them are Poly Medicure with revenues of Rs 374 crore and a market cap of Rs 1,620 crore; Opto Circuits with revenues of Rs 141 crore and a market cap of Rs 396 crore; and Centenial Surgical Suture with revenues of Rs 51 crore and a market cap of Rs 20 crore.
The domestic medical devices market is estimated at $6.8 billion, but only one-third of it is locally manufactured. India also exports medical devices worth nearly $1 billion. The government recently said it would not regulate the prices of medical devices like medicines. It is planning to formulate a comprehensive policy to fuel growth of the medical devices sector.
A Confederation of Indian Industry-Boston Consulting Group report titled Medical Technology: Vision 2025 released last month said several companies including GE, Polymed, BD and Terumo Penpol had ramped up investments in medical devices and were seeing strong business results. However, for further growth, the government needs to spend more on healthcare, introduce single window regulation for manufacturing of medical devices, and provide incentives such as tax holidays and soft loans.
“We have plans to grow our presence, as the demand for medical devices is on the rise. We plan to go public within the next two years to raise capital,” said Vazirani, managing director.
The Mumbai-headquartered firm offers gamut of products and services across sectors such as biochemistry, hematology, immunology, critical care and diabetes management. It has three manufacturing plants, at Daman, Mumbai and Baddi. Vazirani said operations are profitable, with business growing at 25 per cent annually. “We have a presence outside India, too, but the Indian market is growing faster.”
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Transasia also has a unit in Germany, ERBA Mannheim GmbH Group, through which it has made a series of acquisitions in countries including the Czech Republic, Russia, Germany, France, Italy, Mexico and the US. Most of these were in the past six to seven years. Vazirani said the company would focus on emerging markets in Asia, Africa and Latin America.
Currently, only a handful of medical devices firms are listed in the Indian stock market. Some of them are Poly Medicure with revenues of Rs 374 crore and a market cap of Rs 1,620 crore; Opto Circuits with revenues of Rs 141 crore and a market cap of Rs 396 crore; and Centenial Surgical Suture with revenues of Rs 51 crore and a market cap of Rs 20 crore.
The domestic medical devices market is estimated at $6.8 billion, but only one-third of it is locally manufactured. India also exports medical devices worth nearly $1 billion. The government recently said it would not regulate the prices of medical devices like medicines. It is planning to formulate a comprehensive policy to fuel growth of the medical devices sector.
A Confederation of Indian Industry-Boston Consulting Group report titled Medical Technology: Vision 2025 released last month said several companies including GE, Polymed, BD and Terumo Penpol had ramped up investments in medical devices and were seeing strong business results. However, for further growth, the government needs to spend more on healthcare, introduce single window regulation for manufacturing of medical devices, and provide incentives such as tax holidays and soft loans.