Trivitron Healthcare Private Limited has received a private equity fund infusion from the Fidelity Growth Partners India (FGPI) of around Rs.400 crores (US$ 75 million). The investment also provides partial exits for ePlanet Ventures and Headland Capital, which invested in Trivitron since 2007. The funding will see the company increase its efforts to become a global player in the imaging and lab diagnostics segments.
The medial equipment major aims to close FY2012-13 with pro-forma gross revenues in excess of Rs.700 crore through organic and inorganic routes enabled through this investment round. It would look to grow the business in Europe and the United States. The funds will be used to increase the shareholding in Kiran Medical Systems, an international player in imaging accessories, expanding operations at Trivitron Medical Technology Park, and enhancing the company’s distribution operations in South East Asia, Middle East and Africa.
For the past 15 years, Trivitron has been India’s largest exclusive pan India wholesale distributor and after-sales support provider of medical equipment and devices. Its areas of expertise include imaging, lab diagnostics, cardiology, critical care,renal care, operating room and ophthalmology equipment. The company is the partner of choice in India for an global manufacturer because of its efficient national sales-and-service network and robust logistics infrastructure.
The Trivitron Medical Technology Park, a 25-acre state-of-the-art manufacturing facility in Chennai, set-up in 2009 to house over 15 different medical technology manufacturing facilities of its subsidiaries and joint ventures of the company like with Hitachi-Aloka (Japan) for manufacturing ultrasound equipment and with Biosystems (Spain) for lab diagnostics reagents are already operational.
In addition, the company has also set-up centres of innovation for biomedical equipment in collaboration with the Indian Institute of Technology (IIT), Chennai and under the leadership of its Director (R&D), Prof. Bhuvaneshwar, an innovator in this area.
Trivitron was founded in 1997 by Dr GSK Velu after his stint as the Country Head for Chiron Diagnostics, before embarking on a successful entrepreneurial journey. In addition to Trivitron, Dr Velu has co-founded the leading path lab chain, Metropolis Healthcare and as well as Medfort, a chain of single specialty, eye-care and diabetes-care hospitals. In addition he co-founded a joint venture with the Apollo Hospitals Group for dental clinics(Apollo White) and dialysis centres (Apollo Dialysis).
Commenting on the transaction, Raj Dugar, senior managing director at FIL Capital Advisors (India) Private Limited, the private equity advisory arm for FGPI, said that the medical equipment sector in the country is still nascent and dominated by imports. We believe that India will follow the same evolution trajectory as other emerging markets like China where large, indigenous manufacturers of medical equipment have emerged over the past decade. Trivitron is well positioned to capitalize on this trend.
“Fidelity with its vast knowledge in the medical devices space in China, USA, and Europe will be able to add substantial value to Trivitron in becoming a global player in the imaging and lab diagnostics segments. The PE major’s long-standing experience in China would also help us in making in-roads in the value segment and help us to implement a strong growth plan, said Dr Velu.
Kotak Mahindra Capital Company (KMCC), the investment banking arm of Kotak Mahindra Bank, was the exclusive advisor to Trivitron on the transaction. Amarchand & Mangaldas & Suresh A Shroff & Co. acted as the company’s legal counsel.