Medical device company Poly Medicure (Polymed) is exploring acquisitions in the technology sector and capital expenditure (capex) after raising Rs 1,000 crore through a qualified institutional placement.
Himanshu Baid, managing director of Polymed, said Rs 250 crore has been allocated for acquisitions, particularly in the technology space, while another Rs 250 crore will be used for general corporate purposes.
“For now we will keep it open because we operate in a global market. We will look for companies that offer technology with which we can expand the business,” he added.
Baid explained that the medical technology industry has a long gestation period, as it takes a couple of years to set up a new plant and an additional year and a half to obtain regulatory approvals and clinical trials. This requires large investments, making acquisitions a quicker route to growth.
“Half of the money raised will therefore be allocated to new capital investments, which will begin now and be completed by the end of 2025-26,” Baid said.
The company is also focused on expanding its portfolio and increasing its product range. “We are working on six main therapies: infusion therapy, vascular access, transfusion systems, cardiology, intensive care and renal diagnostics. In each main category, we plan to add two to three new products each year,” said Baid.
Polymed is also increasing investments in research and development to accelerate the introduction of new products.
The company also plans to expand into three or four business areas it has entered in recent years, such as cardiology, intensive care and renal diagnostics. This expansion will be carried out in the manufacturing sector to increase its presence.
“In cardiology, our goal is to increase our presence in interventional cardiology and then expand into cardiac surgery products, as well as structural heart devices and electrophysiology,” Baid said.
“By the end of this year, we hope to capture 12-13 per cent of the renal market in India, and now we are looking to expand this business globally,” he added.
While 70 per cent of the company’s revenue came from exports in 2023-24, it plans to further expand its global reach.
“We want to expand further into the European market, which currently accounts for around 30 percent of our export revenue. The next key markets will be the United States and Latin America,” said Baid.
The focus, Baid added, will continue to be on these highly regulated core geographies.
First published: September 16, 2024 | 19:45 IS
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