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Kerala makes cut in medical
device manufacturing
Kerala is slowly emerging as a manufacturing hub for medical
devices, thanks to a clutch of local entrepreneurs who have made the state their
base for this highly advanced industry.
KOCHI: Kerala is slowly emerging as a manufacturing hub for
medical devices, thanks to a clutch of local entrepreneurs who have made the
state their base for this highly advanced industry, which requires expertise in
plastics and precision engineering, besides qualified engineers.
Industry insiders reckon Kerala is home to around 20
established medtech players with around Rs 7,350 crore in annual turnover. If
small and medium enterprises (SMEs) are also considered, Kerala has nearly 60
registered medical device manufacturers - of the total 900 in the country - that
contribute 20-25% of the total production in the country.
Some of the companies are leading players in their segments.
Consider this: Thiruvananthapuram-based Terumo Penpol is India’s largest
blood-bag manufacturer; Dentcare Dental Lab in Muvattupuzha is Asia’s largest
producer of dental products; Kochi-based Agappe Diagnostics is India’s leading
in vitro diagnostics company; NeST, also Kochi-based, is the original equipment
maker (OEM) for many multinational corporations, including GE and Philips.
‘State can become medtech hub in one or two years with policy
changes, autonomy’
Based in the state capital, central PSU HLL Lifecare, which
specialises in blood transfusion and neo-natal care equipment, contraceptives,
and surgical and healthcare products, reported a turnover of `500 crore in
2022-23.
Industries Minister P Rajeeve said Kerala accounts for around
20% of the medical device manufacturing in the country. The government aims to
make it 50%. “The Thonnakkal Life Science Park and the expansion of medical
device manufacturing companies in the state have benefited us. We also ensure
support to the sector. The industrial policy outlines our aim to make the state
a medical device manufacturing hub,” he said.
According to Thomas John, the MD of Agappe Diagnostics,
Kerala contributes significantly to the Indian market. “The state has around 20
established companies in medtech sector. Highly skilled employees, technology
and other factors make the state conducive for setting up the firms,” he said.
Balagopal Chandrashekar, the founder of Terumo Penpol, said
there are several states with potential in the sector. “With just 7% of the
total registered companies, Kerala accounts for around 20-25% of total output.
The majority of the companies are small and medium enterprises with turnover in
the range of Rs 50 crore to Rs 200 crore,” he said, adding that the numbers show
that there is a flourishing medical device manufacturing sector in Kerala.
The industry is technology-driven, and Kerala has the
required skilled professionals to drive growth. “Medical manufacturing is a
sector that requires research and development. Kerala has it. Also, it is not
very labour-intensive and requires skills, which we are blessed with. These
factors make the state a better option to start a business,” added Thomas.
C Padmakumar, the special officer of the Kerala Medical
Technology Consortium (KMTC), said companies can benefit from the experience and
expertise of institutions like the Sree Chitra Tirunal Institute for Medical
Sciences and Technology (SCTIMST) and other universities which are directly or
indirectly involved in research in the field. “It helps in reducing imports and
raising the quality of products,” he said.
Kerala has other facilities that can help manufacturing units
flourish, says Balagopal. “Testing facilities, research institutions and the
strong base of higher education institutions that do research in the field,
besides the presence of manufacturing units are key to establishing medical
devices manufacturing units. Also, the geographical character, topography,
pattern of land colonisation, and the distributed and dispersed urbanisation
patterns of Kerala can help,” emphasises Balagopal.
The government, too, has a role to play. “The establishment
of KMTC with people from the medical devices manufacturing sector was a good
move on the part of the government. However, there’s much more the government
must do,” he added.
Various departments should come together to ensure the growth
of the sector, stresses Padmakumar. “By making use of existing infrastructure,
enabling collaboration between universities, industries, hospitals, and
startups, and connecting them to global leaders, we can make the state a hub for
medical devices manufacturing. KMTC is working towards realising the goal,” he
said.
“Medical device industrial parks with ancillary units and
supporting systems are required. It will help if manufacturers are provided land
at cheaper rates with extended period for making payments and support for
capital expenditure, such as long-term interest-free or low-interest loans,
common warehousing facilities, and subsidies for power and water,” said Thomas.
“Policy changes, along with the efficient functioning of KMTC,
with a certain amount of autonomy, will allow the state to become a hub within
one or two years,” added Balagopal.
(Ref:
https://www.newindianexpress.com/states/kerala/2024/Jan/29/kerala-makes-cut-in-medical-device-manufacturing
Dated 29 Jan 2024)
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