Medical equipment majors check in

The increasing corporate presence in tertiary healthcare segment in India is attracting global medical device makers, medical equipment suppliers and hospital supplies segment into the country in a big way. Tie-ups with corporate hospital chains are also happening at various levels, indicating the huge potential that global medical technology players find in the fast-changing Indian healthcare landscape.

Global medical equipment major Philips Medical Systems had recently inked an exclusive partnership with the Apollo group-promoted corporate hospital, Artemis Health Sciences, for joint research in new medical technologies. Every new medical equipment from Philips will find a place in Artemis hospital, thereby, assuring the patient, not only treatment confirming to international standards, but also diagnosis through most advanced equipment hitherto unavailable in Indian hospitals.

The US-based $4 billion medical supplies major, 3M Health Care, is another example of a multinational player that has been influenced by the growing presence of corporate hospitals in the country.

The company, which has been operating in India for over a decade now, has decided to introduce most of its international range of medical supplies to cater to the affluent, quality conscious patients that are to prefer treatment in corporate hospitals.

"The fast changing healthcare scenario in the country and the chances of health tourism has made it essential to introduce all internationally available products in the country. We are planning partnerships with corporate hospitals. We have already entered into some understanding with Wockhardt Hospitals, Bangalore," said Gautam Khanna, vice-president, healthcare business, 3M India.

Delhi-based Max Healthcare has an understanding with IBM for its information technology-related services. The centralised tele-centre serving all MAX hospitals have patients registered real-time and is in the process of making electronic medical records accessible any place. It is also working to have Picture Archives and Communication System, a globally accepted data access system in its hospitals.

India is not only becoming a market for multinational medical device majors. The country is also turning into a sourcing base if Becton Dickinson India (BD India), the wholly owned subsidiary of US-based medical technology major BD's plans are taken seriously. BD is in the process of augmenting its manufacturing capabilities by setting up additional production lines for catheters and insulin syringes.

According to Ram Sharma, Managing Director, BD India, the company is to see Indian facility as sourcing base for the entire region. "The turnover of the company has tripled in last five years to $60 million during the current year. We expect it to be $100 million by 2008-09" He said.

According to a recent Cyngus study, global medical devices market is estimated to be $196.65 billion in 2006 and has grown at a CAGR of 4.5 per cent during the five-year period 2001-05.