Private Limited is planning to use the money partially for acquisitions in Europe and in US. Meanwhile, today the company announced a strategic partnership with Italy-based DiaSorin Group.
G S K Velu, founder and MD of Trivitron Group of Companies said that “we are looking at companies with a turnover of around Rs 100 crore in Europe and US, the acquisition is mainly for technology. This will be the first big acquisition by the company”.
The money will also be used to increase Trivitron’s shareholding in Kiran Medical Systems, an international player in imaging accessories, where it acquired a minority stake earlier this year. He declined to comment further.
Trivitron has raised around Rs 400 crore in a round led by Fidelity Growth Partners India (FGPI). The investment also provides partial exits for ePlanet Ventures and Headland Capital, who invested in Trivitron in 2007. ePlanet and Headland Capital (earlier HSBC Private Equity Asia) invested $11 million or Rs 50 crore in Trivitron.
Commenting about White Dental Care, a joint venture between Trivitron and Apollo Hospitals, fund raising plan, Velu said, “both the boards have decided not to look for external funding for now and decided to fund the expansion plan from the internal resources. The company is planning to expand number of dental clinics to 100 in the next two years from 25 at present”.
Speaking about partnership with Diasorin, he said, both the partners will cater to the Indian InVitro Diagnostics market of around $500 million and Indian Immunodiagnostic market of around $165 million.
The partnership has formed the capital companies DiaSorin Trivitron Healthcare Pvt Ltd, in which the parties will have 51 per cent and 49 per cent stakes respectively. The company will directly operate in the India diagnostics market and the company expects it will play a key role in the immunodiagnostic market over the next three years.
Combining the strengths of Diasorin and Trivitron, in the next three years we attempt to reach leadership position in the Indian Immunoassay segment.
To start with, it will be a trading partnership, going forward the company would look at setting up a manufacturing capacity near Chennai. The products will be available from January.
The JV will start with an investment of Euro 2 million and set a target of around Rs 100 crore in the next two years, he added.
Till the manufacturing capacity goes on stream the products will be imported from DiaSorin manufacturing units in Europe. "Once the manufacturing capacity goes on stream the products will be 30-50 per cent cost effective".
He added, none of MNCs including Abbott, Siemens, Roche which are catering to this segment are importing and don't have facilities in India and this JV will be the first one to manufacture in India on immunodiagnostics segment.
Trivitron has been a contributor in IVD segment, wherein the company installed Immunoassay analyzersin almost 70 per cent of labs in India. It is the first company to launch the Chemi Luminescence Immuno Assay platform in India.
