Trivitron announced that Fidelity Growth Partners India (FGPI) has anchored a round of investment of approximately Rs 400 crore ($ 75 million). This investment also provides partial exits for ePlanet Ventures and Headland Capital, who have been invested in Trivitron since 2007.
With the new fund infusion into the company, Trivitron aims to become a global player in the imaging and lab diagnostics segments through organic growth as well as through acquisition of companies and technologies in Europe and the US. The funds will be used to increase Trivitron’s 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.
Commenting on the transaction, Raj Dugar, Senior Managing Director, FIL Capital Advisors (India), the private equity advisory arm for FGPI, said, “We are excited to partner with Dr GSK Velu, Founder, Trivitron Group of Companies and the company. Trivitron has a presence in both value and premium segments, and offers an excellent portfolio of products across India. 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 capitalise on this trend with its unparalleled distribution and service infrastructure that is difficult to replicate. High quality manufacturing efforts of Trivitron’s subsidiaries and joint ventureswill allow Trivitron to expand its product portfolio to all segments of the market.”
Dr Velu said, “We are excited to have Fidelity as new investors and board members in Trivitron. Fidelity with its vast knowledge in the medical devices space in China, US, and Europe will be able to add substantial value to Trivitron in becoming a global player in the imaging and lab diagnostics segments. Fidelity’s long-standing experience in China would also help us in making in-roads in the value segment. I am certain that Fidelity’s guidance would be invaluable in helping Trivitron implement its strong growth plan.”
Over the past few years, subsidiaries and joint ventures of Trivitron have been steadily laying the foundations for manufacturing medical equipment. Trivitron Medical Technology Park, a 25-acre state-of-the-art manufacturing facility in Chennai, was established in 2009 to house over 15 different medical technology manufacturing facilities of Trivitron’s subsidiaries and joint ventures;Trivitron’s joint ventures with Hitachi-Aloka (Japan) for manufacturing ultrasound equipment and with Biosystems (Spain) for lab diagnostics reagents are already operational. The company has recently 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. Bhubaneshwar, a well recognised innovator in this area.
Trivitron 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.
EH News Bureau