Allengers mulls global expansion

Chandigarh-based Allengers Medical Systems Ltd, manufacturers of medical diagonistic equipment, may borrow from the capital market to fund its global expansion plans.

According to Suresh Sharma, managing director of the company, there is an immense demand for the medical diagnostic equipment, like X-ray systems, C-Arm Image intensifiers, Cathlabs, Lithotripters, Mammography, Dental Machines, OPG and DSA Systems, in the overseas markets and the expansion plan would help them get a foothold in the global market.

He said the company started exporting last year and clocked a turnover of Rs 10 crore. The target for export has been set at Rs 20 crore this year. RS Kanwar, director (overseas operations), Allengers Medical Systems, told Business Standard that the company is planning to set up manufacturing facilities in Colombia and Brazil.

"The US suppliers were dominating the Latin Amercian market and a manufacturing base there would give us a cost advantage and a greater access to the local market," he added.

He told that Pakistan was another major destination for the medical diagonistic equipment. "The high duty structure (35 per cent export duty) in Pakistan is a deterrent to export, so we are negotiating to set up a plant in Pakistan by the next year," he added.

He said the CT Scanner would be added into the product range by the year end.

He said Allengers was the only company in India that offered high frequency medical diagonistic equipment (40 kHz). The company has a turnover of more than Rs 50 crore with a market share of 35 per cent in India and has an annual growth of 25 per cent.

Allengers has manufacturing plants at three locations (one at Baddi and two at Dera Bassi).

Sharma said they had ample space at the existing units to expand operations in the domestic market.

The company would open its first overseas marketing office in Malaysia this month which would be followed by Germany, USA and Kenya.

Allengers Medical Systems Ltd was awarded the 'Century International Quality Era Award' by the Business Initiative Direction (BID) at Geneva last month.