Trivitron, India’s leading medical technology Company announced a significant investment of USD 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 Trivitron’s forthcoming medical technology park. Veda Coprorate Advisors acted as advisor for this transaction.

The proposed INR 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, Managing Director of Trivitron Group of Companies says, “The Indian Medical Technology industry accounts for an expenditure of US$2.7 billion with USD 2.4 billion of it accruing towards imports 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 leaders among other medical equipment manufacturers around the world. We are delighted that reputed global investments firms like HSBC Private Equity (Asia) Limited & 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%, 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.

Mr. Chandrasekar Kandasamy, Managing Director, ePlanet Ventures says, “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 add 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 equipment to serve both the local and global markets.”

Today, the 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 for high quality, specialised medical equipment, which at a 15 % annual growth rate is expected to touch

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