An appetite for expansion

M&A: Delhi-based Poly Medicure has now set its eyes on Europe.

Delhi-based Medical devices company, Poly Medicure, has embarked on a Rs 39 crore expansion plan to scale up capacities as well as foray aggressively into the overseas markets. After picking up the bankrupt US Safety Syringes for a $ 1 million, the company is now scanning France and

Germany for acquisitions that would give it a toe-hold in the distribution channels in that continent.

On the domestic front, the Rs 71 crore company has lined up an expansion plan spread over till 2008. It has already undertaken capacity expansion for blood bags and IV Cannulae in its existing facilities in Vallabhgarh in Haryana and would be setting up a second site in Haridwar by the year end, at an estimated cost of Rs 20 crore.

"In our current phase of expansion, besides inaugurating the Haridwar site, we are integrating and synergising our US acquisition. We would be focussing on blood collection bags and safety syringes that have a market potential of $ 200 million," said Himanshu Baid, managing director, Poly Medicure.

Having lapped up an acquisition, Poly Medicure is now scouting for a strategic partner in the distribution space for the $ 50 billion US medical devices market to push its products.

The company would commence sales in US by September this year. Baid added that they hoped to make $ 2 million by January,2007 and $ 8 million by 2009 from the US market alone.

The company already draws 85 per cent of its revenues from exports but now wants a front end presence in the developed overseas markets.

"We will be looking at small acquisitions of $ 1-3 million in the next 2-3 years in Western Europe especially France and Germany. On the Indian medical devices market which is roughly worth Rs 5000-6000 crore front, Baid is less bullish.

"Even though the recent directive for registration of medical devices would be a boon for this industry which is highly unregulated and fragmented, there is still a long way to go in terms of compliance to quality specifications," commented Baid.