Poly Medicure , a prominent player in the Indian medical device industry, is optimistic about the potential impact of proposed Goods and Services Tax (GST) reforms on the sector. Himanshu Baid, the company's Managing Director, has shared insights on how these changes could significantly influence the market dynamics for medical devices in India.

Potential GST Rate Reduction

According to Baid, the current GST structure for medical devices varies based on the nature of the product:

• 5% for life-saving items
• 12% for consumables
• 18% for equipment

The industry is anticipating a potential reduction in the GST rate for consumables from 12% to 5%. This change, if implemented, could have a substantial impact on the market.

Expected Market Impact

Baid projects that the proposed GST rate cut could lead to:

• A 6-7% reduction in product prices
• Increased demand for locally manufactured medical devices

This potential shift in pricing and demand could provide a significant boost to domestic manufacturers in the medical device sector.

Indian MedTech Market Overview

The Indian MedTech market presents a sizeable opportunity:

The healthcare sector in India has been experiencing robust growth, with an annual rate of 12-15%. Notably, there has been an increasing preference for domestically produced medical devices over the past 4-5 years.

Export Scenario and Challenges

India's medical device exports have been gaining traction:

• Exports to the US: $700 million

However, these exports may face pressure due to potential tariffs in the US market. Poly Medicure, while having a limited exposure to the US market (3-4% of total exports), is strategically planning for future growth:

• Developing new product lines for the US market
• Expected launch of these products by FY27

Diversification Strategy

To mitigate risks and capitalize on global opportunities, Poly Medicure is actively diversifying its export markets. The company is focusing on expanding its presence across:

• Europe
• Asia
• Latin America

This diversification strategy aims to reduce dependency on any single market and tap into the growing demand for medical devices worldwide.

The proposed GST reforms, if implemented, could mark a significant shift in the Indian medical device industry. For companies like Poly Medicure, it presents an opportunity to enhance their market position and contribute to the growth of domestic manufacturing in this critical sector.

Poly Medicure Limited , a leading manufacturer of medical devices in India, has received approval from the National Company Law Tribunal (NCLT) for its ₹33.15 crore resolution plan to acquire Himalayan Mineral Waters Private Limited. This strategic move is set to expand Poly Medicure's manufacturing capabilities and create operational synergies.

Acquisition Details

The NCLT's Allahabad Bench approved Poly Medicure's resolution plan, as disclosed in a regulatory filing by the company. The acquisition will give Poly Medicure complete ownership of Himalayan Mineral Waters, adding valuable manufacturing assets to its portfolio.

Strategic Benefits

The acquisition is expected to bring synergies in several key areas:

• Operations
• Procurement
• Marketing
• Sales

These synergies are anticipated to strengthen Poly Medicure's position in the medical devices manufacturing sector.

About Himalayan Mineral Waters

Himalayan Mineral Waters Private Limited, incorporated on November 20, 1990, has its registered office in Roorkee, Uttarakhand. The company's key assets include:

1. A manufacturing facility built on a 2.72-hectare land parcel in SIDCUL, Haridwar, strategically located adjacent to Poly Medicure's existing manufacturing facility.
2. A 10.67-hectare land parcel in Bharuch, Gujarat.

Financial Overview

Himalayan Mineral Waters' recent financial performance shows:

Implementation Timeline

Poly Medicure plans to complete the acquisition within 30 days from the effective date as outlined in the Resolution Plan. The company has stated that all required approvals, including those from the NCLT and under the Companies Act, 2013, have been obtained.

Market Impact

This acquisition aligns with Poly Medicure's growth strategy, potentially enhancing its manufacturing capabilities and market presence in the medical devices sector. The strategic location of Himalayan Mineral Waters' manufacturing facility, adjacent to Poly Medicure's existing plant, is expected to create operational efficiencies.

As Poly Medicure continues to expand its footprint in the medical devices industry, this acquisition marks a significant step towards strengthening its manufacturing base and competitive position in the market.