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Trivitron investing Rs 50 cr for setting up new manufacturing unit in TN

Usha Sharma, MumbaiSaturday, November 3, 2007, 08:00 Hrs  [IST]

The Chennai based leading medical technology company Trivitron group is investing Rs 50 crore for setting up a new manufacturing unit at Tamilnadu in Sriperambadur. The company will have a joint venture with Japanese company, Aloka Co. Ltd. The project will be commissioned by first quarter of 2008. As per the agreement, Trivitron will manufacture Portable Black & White Ultrasound Scanners, Floor Model High Resolution Black & White Ultrasound Scanners and Whole Body Colour Dopplers. The investment pooled in by the two companies will therefore be used for acquiring necessary Capital Equipment and Infrastructure for setting up the manufacturing unit. Trivitron will additionally extend its current distribution network in India for sales application and engineering support for the new products. Apart from meeting the needs of the Indian Market, the products manufactured by the JV will be exported to several developing/developed countries across the world. The company has entered into joint venture agreement with Aloka, the innovators in Ultrasound technology for the manufacturing cost effective, high technology ultrasound equipments in India to suit the needs of the developing countries. Dr GSK Velu, managing director, said, "We have requested 25 acres land from government of Tamilnadu. The land allotment is expected within by the end of October and our construction activity will be start from November 2007. The current market size for Ultrasound equipments in India is around Rs 500 crore and market is growing at an average CAGR of 20 per cent per annum". The partnership with Aloka, will give an unbeatable edge and a first-mover advantage for the company to tap the potential in this field. The new manufacturing facility of the company will be manufacturing major products like black and white ultrasound machines and color dopplers, he said. The JV will have 60 per cent stake by Aloka and 40 per cent stake by Trivitron. "We are growing at the rate of CAGR of over 35 per cent for the past three years and we expect to reach a revenue of Rs.200 crore in this financial year. We are seeking partnership from other leading medical technology manufacturers in the world to form more JV's to manufacture medical technology products in India.

 
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