Medical technology firm Trivitron Healthcare Pvt Ltd has completed a strategic investment in Mumbai-based Kiran Medical Systems Ltd, which manufactures image enhancement accessories and radiation protection products. The move is aimed at strengthening its operations in the medical imaging segment.
The strategic investment is a combination of cash and stock swap, and the agreement includes options for Trivitron to increase its shareholding over the next few years.
The investment would open ways for Trivitron to enter US, Europe, Japan and Latin American markets where Kiran has its presence, said GSK Velu, founder and managing director, Trivitron Healthcare. However, he refused to divulge the details of investments, saying that it is a significant minority investment.
"This investment will strengthen our presence in medical imaging market. Our target is to be the number one player in the medical imaging segment in next three to five years and around Rs 1,000 crore turnover in next three years," said Velu.
The company is expecting a revenue of Rs 500-600 crore in the current fiscal from around Rs 360 crore posted last year.
The Rs 50-crore Kiran Medical Systems is expected to supply products in Middle East, South East Asia and African markets, where Trivitron has its marketing base. The company has presence in around 160 countries across the world and manufactures products including cassettes, screens, grids, shields and computer radiography systems for medical imaging.
With the strategic investments, Kiran expects a three-fold growth in topline in next three to four years and a 25 per cent growth in bottomiline, said Ramesh Modi, CEO, Kiran Medical Systems. The company expects a 25-30 per cent growth on product-to-product each year in near future, he added.
Chennai-based Trivitron is present in imaging market in India through a joint venture with Hitachi Aloka Medical Ltd which offers ultrasound and colour doppler. The company has acquired Pune-based Vision Engineering to manufacture x-ray systems and tied up with Hologic Inc, USA, to offer digital mammography and bone densitometer. In August this year, it entered into a stratetic partnership with Hitachi Medical Systems to provide high end imaging solutions such as CT, MRI, digital x-ray and ultrasound systems.
