Poly Medicure plans Rs 40 cr expansion in medical devices segment

Poly Medicure Ltd, a New-Delhi based manufacturer and supplier of medical devices and disposables, is planning to expand its manufacturing capacity with an investment of Rs 40 crore in the next two years in an effort to grab the market and contract manufacturing opportunities in the US and Europe. The company, which currently has a capacity to manufacture 260 million pieces of medical devices per annum, is planning to expand the current facility and will set up a new plant exclusively for exports to European Union markets. With the expansion, the capacity will reach production of 400 million pieces of medical devices per annum, said Himanshu Baid, managing director, Poly Medicure. The expansion of current facility, in tune with the fast growing market demand in the country, will be completed within 2010 even as the export oriented unit will be functional in 2011. Around 50 per cent of the investment will be infused from the internal accruals whereas the rest will be based on loans. ‘‘The medical device market is growing at 15 to 18 per cent worldwide and India has a potential to become a perfect outsourcing partner for overseas firms in designing and manufacturing these products. Through the expansion, our aim is to tap the potential with enough capacity and expertise,’’ said Baid. The fast growing healthcare segment will increase the market opportunity for medical devices in India too. At present, almost 1.2 million hospital beds available in the country and estimates are that the number will increase to two million beds by 2012. In tandem with this development, the medical devices market, which is currently estimated at Rs 8000 crore to Rs.10000 crore, is expected to grow substantially, he added. The Rs.112 crore-Poly Medicure is operating on selected medical devices and disposables segment, which has a potential up to Rs 1000 crore and currently has five per cent market share. Through the capacity expansion, the company is targeting to bag 10 per cent of the market share by 2012. Similarly, the company will focus on its operation in Europe, other than the current business in US. The European medical devices market, amounts to around a billion US dollars also offers a huge potential for both exports and outsourcing business. The company is expected to reach Rs 135 crore in terms of revenue in the current financial year and gradually grab more business within 2012, said Baid.