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HSBC PE (Asia) Fund, ePlanet To Invest US$
11 Mn In Trivitron
Trivitron, India's leading medical technology company, has
announced a significant investment of US$ 11 million, by a wholly owned
subsidiary of the HSBC Asian Ventures Fund 2 Limited advised by HSBC Private
Equity (Asia) Limited and ePlanet, a global venture capital and private equity
firm.
Both firms will together hold a minority stake in Trivitron.
The funds raised will facilitate Trivitron's ambitious manufacturing business
plans through acquisitions and joint ventures and will be used for the
infrastructural development for Trivintron's forthcoming medical technology
park. Veda Corporate Advisors acted as advisor for this transaction.
The proposed Rs 250-crore medical technology park is a first
of its kind initiative and will promote indigenisation of medical technology in
India. Trivitron has also requested the government of Tamil Nadu to allot 25
acres of land near Chennai to start this project.
Speaking on the occasion, Dr G.S.K. Velu, MD of Trivitron
Group of Companies said, "The Indian medical technology industry accounts for an
expenditure of US $ 2.7 billion with US $ 2.4 billion of it accruing towards
import alone. Our forthcoming medical technology park would be the first step
towards indigenisation of medical equipment manufacturing in India thereby
making India one of the leader among other medical equipment manufacturers
around the world. We are delighted that reputed global investments firms like
HSBC Private Equity (Asia) Limited and ePlanet have shown trust in our vision
and aggressive growth plans to reach the 1000 crore revenue mark by 2010".
According to James Savage, investment director, HSBC Private
Equity (Asia) Limited, "The healthcare industry is one of the fastest growing
service sectors in India, and the private sector is witnessing a paradigm shift
from predominantly small scale operations to large scale institutional
organisations. With population growing at 1.38 per cent, we see a steep rise in
demand for high quality medical equipment at competitive prices. With over a
decade of experience in the sector, we believe Trivitron is well positioned to
benefit from this opportunity".
As a result of the investment, Trivitron can leverage HSBC
Private Equity (Asia) Limited's extensive network and reach in other Asian
markets to expand their presence overseas," he added.
Chandrasekar Kandasamy, MD, ePlanet Ventures said, "With an
existing portfolio of more than 15 companies in the healthcare and life sciences
arena, coupled with a dedicated team, ePlanet, has special interests in this
sector. Our strong focus especially in the healthcare devices space,
could provide significant value addition to Trivitron and help them in
identifying and acquiring companies in the healthcare space worldwide.
"Moreover we believe Trivitron will provide a platform for
our global partners for their entry into India, to set up manufacturing
facilities and distribution centres for medical equipments to serve both the
local and global markets".
Medical Device market is growing exponentially. According to
official statistics, the number of clinics and hospitals has increased almost
four times since 1950. This has led to an increase in demand of high quality,
specialised medical equipment, which at a 15 per cent annual growth rate is expected to touch $ 3.67
billion by 2012. The Indian healthcare sector has also seen a progressive
increase in investments in infrastructure and facilities, especially hi-tech
medical devices. This has made the medical device sector an one of the most
promising markets in India.
Trivitron is one of the top 10 medical technology companies
in India and aims to bring in a revolution in manufacturing industry. It operates in the field of medical equipment, medical
devices, clinical diagnostic equipment, medical consumables & disposables,
medical software and consultancy services.
(Ref: The Chronicle Pharmabiz dated November 8, 2007)
Fresenius Group Net Profit Up By 28%
Fresenius Group, a health care group with international
operations, providing products and services for dialysis, hospital and
outpatient medical care, has posted strong growth of 27.9 per cent in net profit
during the first nine months ended September 2007 to Euro 298 million from Euro
233 million in the similar period of last year. The group's sales increased by 7
per cent to Euro 8,390 million from Euro 7,843 million. EBDIT margins improved
to 17.7 per cent from 17.2 per cent. Earning per share were Euro 1.92,
representing an increase of 26 per cent.
In North America sales grew by 14 per cent to Euro 3,741
million from Euro 3,556 million due to the Renal Care Group consolidation and in
Europe sales increased by 7 per cent to Euro 3,528 million from Euro 3,297
million.
The group spent Euro 485 million for property, plant and
equipment and intangible assets. Acquisitions were Euro 242 million. The
operating ash flow increased by 44 per cent to Euro 912 as against Euro 588
million, driven by the strong earnings increase. The group's total asset
increased by 4 per cent in to Euro 15,054 million from Euro 15,024
million. As at the end of September 2007, Fresenius increased the number of its
employees by 5 percent to 1.10 lakh.
All the divisions of the group improved working during
the first nine months of 2007. Fresenius Biotech is engaged in developing
innovative therapies with trifunctional antibodies for the treatment of cancer
as well as cell therapies for the treatment of the immune system. It has
successfully marketed ATG-Fresenius S for many years. The company is in
discussions with potential partners for marketing of removab, for patients with
malignant ascites, in USA and Japan.
Fresenius Medical Care achieved strong sales growth of 16
percent to US$ 7151 million in the first nine months of 2007. Its EBIT rose by
19 per cent to US$ 1,152 million. Fresenius Kabi offers infusion therapies and
clinical nutrition, posted sales of Euro 1,494 million during the first nine
months of 2007 and earned a net profit of Euro 132 million. Fresenius ProServe,
a leading German hospital operator with 58 facilities, recorded sales of Euro
1,601 million.
Based on the Group's working during first nine months,
Fresenius now expects net income to increase by more than 25 per cent and net
sales by 9-10 per cent in 2007.
(Ref: The Chronicle Pharmabiz dated November 8, 2007)
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