Trivitron, the medical technology major in India, received a capital infusion of US $11 million from a wholly owned subsidiary of the HSBC Asian Ventures Fund Limited advised by HSBC Private Equity (Asia) Limited and ePlanet, a Global Venture Capital and Private Equity firm.
The funds raised will facilitate Trivitron's ambitious manufacturing business plans through acquisitions and joint ventures and will be used for the infrastructural development for the company's forthcoming medical technology park, Dr G S K Velu, managing director, Trivitron Group of companies told Pharmabiz.
The company handles over 190 products, out of which over 10 are manufactured at its production bases located in Chennai and Pune. Dialysis and diagnostics are the two fastest growing divisions of Trivitron. Recently, its imaging division introduced new brand Brem range of X-Ray products. The range includes a conventional 2 pulse X Ray generator and the latest state-of-the-art high frequency Generator.
In order to offer Image Management solutions, it has also opened an independent business unit to offer cost-effective radiology and hospital management solutions.
Trivitron has tied-up with Star ETA to form Star Trivitron, a joint venture company established in Dubai. The newly formed entity's focus includes medical devices, medical supplies and pharmaceutical products. The joint-venture company is an extended marketing arm of Trivitron focused on increasing the company's presence in the international markets of Middle East and North African region. The company hopes to use the infrastructure of ETA Group to establish a brand presence of Star Trivitron in these countries to market the medical technology products, stated Dr. Velu.
The markets of India, South Asia, Middle East, Africa, South East Asia which cover Thailand, Vietnam and Indonesia are the key focus regions in the company's business strategy.
In 2006-07, the company recorded annual sales revenues of Rs 1.5 billion (US$ 37 Million) and is hopeful to cross Rs 2.0 billion mark in 2007-08.
Currently, Trivitron ranks amongst the top five medical equipments and devices companies in India. It is also the largest domestic company in the medical technology space. Companies with higher revenues than Trivitron include GE, Siemens, Philips and Johnson &Johnson. Among the domestic companies in the space which are vying for a market share and generating reasonable revenues include Transasia and J Mitra & Bros.
The medical equipment forms a promising opportunity in India. An analysis by Ernst & Young pegs the value of the medical equipment industry at Rs 9,790 crore (US $2.17 billion) in 2006 growing at 15 per cent annually. Going by the growth of the healthcare sector, it is expected to touch Rs 22,396 crore (US $4.97 billion) by 2012.