Armor Plast Ltd an integrated supplier of high-end medical engineering devices, has chalked out a Rs 14 crore investment plan to augment production capacity to introduce a range of new products. The investment plan is funded through debt route and internal accruals. The company is also looking at forging partnership with global players in order to gain quick market access.
Going by the market potential for growth in medical engineering space and the need for high quality disposable devices, Armor has chalked its expansion plan to respond to the market opportunities and set new standards of efficiency, Amar K Bajaj, managing director, told Pharmabiz.
India is emerging as the hub of medical engineering design and development for high value, low volume devices. Only companies, which have high precision engineering expertise and uninterrupted quality standards can sustain in this space, he added.
Plans on the anvil are to expand volumes of existing products and expand to develop stents and a contraption with which doctors can remove blood clot by creating a vacuum with the device. For the stents, the company has invested Rs 2.5 crore for a four-axis laser cutting-edge technology.
In terms of infrastructure, Armor will augment its injection moulds lines to 28 from the current 16. A new clean room and installation of a host of ancillary and balancing equipment is part of the CAPEX plan this fiscal.
The company, which is talking to key medical devise majors for collaboration is exploring various partnership modules. While technology-transfer for a fee is top on the agenda, possibility of selling stake to raise funds is also being mulled. In addition, a technical joint venture is not ruled out at this point of time, he said.
Armor also has an active back end office in the US which focuses on engineering design and sales. The device designs are developed here and transmitted to India for the final outcomes. This has led its customers abroad to constantly track the progress of development from early stage to final phase. These developments would also lead to an increase in head count from the current 200 to 260, ascertained Bajaj.
For the last eight years, the company has been engaged in the custom design, development and production of critical devices used in breast cancer biopsy, live heart surgery and fine disposable devices for ophthalmic surgeries and a highly sensitive glucose monitor apart from spikes for liposuction for large, well-known global players (names withheld). The large international companies have been dependent on Armor for a range of innovative technologies. These products are manufactured by importing almost 98 percent of the inputs like polycarbonate grade materials, nylons, Pet G sheets, cellulose acetate with 30 percent wood fibre for capillary action.
The global majors have recognized the company as an end-to-end solutions provider in advanced medical engineering. There is significant expertise, which goes into device development, that includes ultrasound welding, ultrasonic polishing and passivation. A biopsy device is made up of 35 precision components. Having access to the entire capability under one roof, makes it easier for global customers to achieve economies-of-scale in terms of product quality scrutiny and delivery time lines, stated the Armor chief.
The two-decade-old company has its inherent capability in high quality precision injection, blow moulded components and containers for domestic and international companies. Manufacturing of medical devices and moulds are carried out in Bangalore at Bommasandra and Peenya units. It is already ISO 9001-2008 certified and will complete its audit for 13485-2003 in December.