Mumbai: Faridabad-based Medsource Ozone Biomedicals, a maker of in-vitro diagnostic equipment and reagents, has hired audit firm Ernst & Young as a consultant to explore options for raising capital to finance its expansion, two people familiar with the matter said.
“The company may try to raise o ₹300-400 crore and the promoters may liquidate some stake for an incoming investor,” said one of the people cited above. The company plans to achieve ₹This person said that in the next 3 to 4 years sales of 500 million crowns.
“While the exact structure of the deal is yet to be decided, it is part of the company’s larger plans to operate as a professionally managed institution,” the second person said. Both people spoke on condition of anonymity because the details are private.
Medsource did not respond to Mint’s emailed queries, while Ernst & Young (EY) declined to comment.
Second round of external funding
If successful, it will be the second external venture round of financing in more than four years. Medsource last raised Fr ₹35 crore from a private equity firm Xponencia Capital Partners in 2021 to launch products and expand its distribution in India and overseas. The company also outlined plans to consider acquisitions and partnerships in adjacent product segments at the time.
Medsource’s expansion plan reflects the potential of India’s growing medical technology market, which EY estimates will more than double from $12 billion in FY24 to $50 billion by 2030, with India’s share of the global market expected to grow from 1.65% to 10% to 12% within 25 years.
The Indian medical device industry comprises five key segments: electronic equipment (56% share), disposables and consumables (26.5%), in-vitro diagnostics (8.1%), implants (7.1%) and surgical instruments (2.3%), according to EY’s 2024 report.
Much of the growth is expected to be driven by rising income levels, expanding healthcare coverage, and increasing medical tourism, creating new areas of demand for affordable and innovative healthcare facilities. Infrastructure development in tier 2 and tier 3 cities along with differentiated pricing models are also expected to unlock future growth in the sector, EY said.
Founded in 2003, Medsource Ozone Biomedicals claims to be one of India’s largest manufacturers of IVD products, supplying laboratories across India and in over 35 countries. Its key products include test instruments, rapid test kits and reagents. The firm was also one of the few suppliers of Covid RT-PCR test kits to Indian laboratories.
Its competitors are Tulip Diagnostics, Agappe Diagnostics and Avecon Healthcare, while Indian total diagnostic kit suppliers include Transasia Bio-Medicals, Trivitron Healthcare and Accurex Biomedical. Other MNCs operating in India include Abbott Diagnostics, Siemens Healthineers India and Meril Diagnostics.
A company that reported sales of ₹173 crore in FY24 added a new manufacturing unit in Faridabad to further enhance its R&D and manufacturing capabilities.
