Poly Medicure Limited , a prominent player in the medical devices industry, has made a significant move to strengthen its international presence and expand its product portfolio. The company has incorporated a wholly owned step-down subsidiary in the Netherlands, setting the stage for a strategic acquisition in the European medical devices market.

Key Developments

Incorporation of RisoR Holdings B.V.

• Poly Medicure has established RisoR Holdings B.V. as a wholly owned step-down subsidiary in Amsterdam, Netherlands.
• The new entity was incorporated on August 29, with an aggregate issued capital of EUR 9.00.
• RisoR Holdings B.V. is directly owned by Poly Medicure B.V., which is a wholly owned subsidiary of Poly Medicure Limited.

Acquisition of PendraCare Group

• RisoR Holdings B.V. has been approved to enter into a Share Purchase Agreement (SPA) with Welling Holdings B.V., Netherlands.
• The purpose of this agreement is to acquire ordinary shares of Pendracare Holdings B.V. and Welling Medical B.V., collectively known as the "PendraCare Group".
• Upon completion of the acquisition, Poly Medicure Limited, through RisoR Holdings B.V., will own 90% of the economic rights in the PendraCare Group.

Strategic Implications

This move by Poly Medicure demonstrates the company's commitment to expanding its global footprint and enhancing its product offerings. The acquisition of a majority stake in the PendraCare Group is likely to provide Poly Medicure with:

• Access to new markets in Europe
• Potential synergies in research and development
• Expansion of its product portfolio in the medical devices sector

Corporate Structure

The corporate structure following these developments will be as follows:

1. Poly Medicure Limited (Parent Company)
2. Poly Medicure B.V. (Wholly owned subsidiary of Poly Medicure Limited)
3. RisoR Holdings B.V. (Wholly owned subsidiary of Poly Medicure B.V.)
4. PendraCare Group (90% economic rights owned by RisoR Holdings B.V. post-acquisition)

Regulatory Compliance

The company has stated that these actions are in compliance with Regulation 30 and 33 of SEBI (LODR) Regulations, 2015. The Board of Directors approved these developments in a meeting held on September 3.

Poly Medicure has committed to providing further details as required under SEBI regulations upon signing and entering into the Shareholders Agreement (SHA) related to this acquisition.

As the medical devices industry continues to evolve globally, Poly Medicure's strategic moves position it to capitalize on international opportunities and potentially enhance its competitive edge in the market.

In a move that could significantly impact the medical device industry, the GST Council is considering a substantial reduction in tax rates for numerous medical devices. The proposed change would see the GST rate drop from the current 12% to a more favorable 5%, addressing long-standing duty-related concerns in the sector.

Upcoming GST Council Meeting

The GST Council has scheduled a crucial meeting for September 3-4 to deliberate on this proposal. If approved, this tax reduction could have far-reaching implications for companies operating in the medical device manufacturing space.

Potential Benefits for Poly Medicure

Poly Medicure , a prominent player in the medical device industry, stands to potentially benefit from this proposed tax reduction. The company, known for its wide range of medical devices and disposables, could see several positive outcomes if the GST rate is lowered:

1. Reduced Tax Burden: A decrease in GST from 12% to 5% would directly lower the tax obligations for Poly Medicure, potentially improving its profit margins.

2. Enhanced Affordability: The tax reduction might allow the company to pass on the benefits to consumers, making their medical devices more affordable and potentially increasing demand.

3. Improved Competitiveness: With reduced tax rates, Poly Medicure could potentially price its products more competitively in both domestic and international markets.

4. Potential for Growth: The more favorable tax environment could provide Poly Medicure with additional resources to invest in research, development, and expansion of its product line.

Industry-Wide Impact

While Poly Medicure is poised to benefit, the proposed GST reduction is expected to have a broader positive impact on the entire medical device industry in India. It could potentially lead to increased investments, innovation, and improved healthcare accessibility across the country.

The outcome of the upcoming GST Council meeting will be closely watched by industry stakeholders, healthcare providers, and patients alike. If implemented, this tax reduction could mark a significant step towards making medical devices more accessible and affordable in India.