Indian MedTech sector to hit USD 50 billion; companies eye larger pie

The Indian medical devices market is estimated to grow 4.5 times to USD 50 billion by 2030, from the current size of USD 11 billion, and hit USD 250 billion by 2047. This will likely reduce India’s import dependence for medical devices from the current 64.6% to 35%, boost exports from the current $3.4 billion to $18 billion by 2030, and take India’s share in the global market from the current 1.5 percent to 6.25 percent by 2030.

Global investors, including KKR & Co., Morgan Stanley, and Warburg Pincus, have shown interest in domestic medical equipment makers. Last month, KKR & Co. won a bidding war to acquire Healthium from British PE firm Apax Partners for $700-800 million. The Medtech company manufactures and sells surgical products in about 90 countries.

Several domestic MedTech firms are already credible challengers to multinational companies in India and global markets. NephroPlus has recently secured ₹850 crore in an investment round led by Singapore-headquartered PE firm Quadria Capital.

Maiva Pharma, a Bengaluru-based injectables manufacturer, raised ₹1,000 crore last month from a fund managed by Morgan Stanley Private Equity Asia and India Life Sciences Fund-IV.

Jashvik Capital invested $25 million in Bengaluru-based Futura Surgicare, which sells surgical devices to over 10,000 hospitals in India and has regulatory approvals in over 70 countries.

US private equity firm Warburg Pincus struck its largest deal ever in India’s healthcare sector, picking up a 65% stake for about $300 million in Chennai-based Appaswamy Associates, a maker of ophthalmic equipment, in April.

As stated by Dr Arunish Chawla, Secretary of the Department of Pharmaceuticals, Ministry of Chemicals & Fertilisers recently, “the mission statement for the MedTech sector is very clear, aim for self-reliance, reduce import dependence, and enhance export competitiveness through value-added manufacturing!”
MB Bureau