The New Delhi-based Poly Medicure Pvt Ltd, manufacturer and supplier of medical devices and disposables, is planning to invest Rs 100 crore by 2013 to expand its presence in overseas market with a thrust on safety medical devices and outsourcing manufacturing and research activities.

The company, which currently has almost 75 per cent of its total Rs 135 crore revenue from exporting products to more than 80 countries including US and Europe, is planning to invest around Rs 100 crore within 2013 to increase its presence in global market and to explore the potential of outsourcing market, said Rishi Baid, executive director, Poly Medicure Ltd. The company is also mulling on acquiring a medical devices company with research and development focus in US, by spending around USD 20 to 30 million.

“In the next three to five years, our focus will be on safety devices market. We are expecting our revenues to grow from Rs 135 crore to Rs 300 to 400 crore by 2013,” Baid averred. The target for the financial year 2010-2011 is fixed at Rs 175 to 200 crore.

The company sells its safety device products to almost 30 countries including South America and Middle East. The safety devices portfolio is expected to increase to 30 to 40 per cent of its revenue in next five years, from a meager eight per cent reported at present, he added.

Focusing on capacity expansion of the existing manufacturing facilities, this year, the company also plans to set up a manufacturing facility – probably through a tie up – in South America by 2012, to grab the market especially in Brazil. The green field project is expected to complete at an investment of Rs 50 crore.

At present, it has two manufacturing facilities - one under a Joint Venture in Egypt and another 100 per cent subsidiary in China – outside the country even as it maintains four manufacturing plants in India – one in Jaipur, two in Faridabad and one in Haridwar. Further, a new manufacturing plant is planned to be set up in Jaipur to develop unique safety device products, for which the works will be initiated in 2011 and expected to complete in March 2012.

However, the Indian medical devices companies are in a better position to explore the emerging outsourcing potential with its skills and cost advantage. “Indian companies can offer products in regulated market in much less price than the products manufactured there. We are offering our safety IV cannula in Europe at 20 per cent less than the prevailing market price there,” reveals Baid. “The recent victory in the German court over the medical devices major B Braun in the IP related dispute has catalysed our urge to grow globally,” he added.

Poly Medicure is currently 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.