Chennai-based medical technology company Trivitron Medical Systems Pvt. Ltd. will get a funding of USD 11 million (INR 433 million) from ePlanet, a venture capital and private equity firm and wholly owned subsidiary of the HSBC Asian Ventures Fund 2 Ltd. Through this arrangement, HSBC through its wholly-owned subsidiary of HSBC Asian Ventures Fund 2 Limited and ePlanet will get a minority stake in Trivitron. The funds raised will be used for acquisitions and joint ventures and for developing Trivitron’s forthcoming medical technology park in Chennai. The proposed INR 2.5 billion medical technology park, which is likely to be located in Sriperumpudur in Chennai, will come up in a total area of 25 acres. The park, slated to be a first of its kind, will promote indigenisation of medical technology in India. Imports by the medical technology industry in the country account for USD 2.7 billion with medical equipment contributing to about 90 per cent of imports. Apart from the INR 433 million from private funding, the company has raised about over INR 900 million from internal accruals and bank borrowing. Trivitron’s technology partners too have pooled in another about INR 900 million for the INR 2.5 billion technology park project. According to James Savage, Investment Director, HSBC Private Equity (Asia) Limited, “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.” By October 2008, the first batch of products is expected to be manufactured from the plant. “The production could be well advanced before the date if Trivitron is able to identify and acquire some smaller companies to aid the project,” said Dr. Velu. Says Chandrasekhar Kandasamy, Managing Director, ePlanet Ventures, “We believe Trivitiron 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.” Though Trinitron is the largest company of Indian origin to produce medical equipment, Dr. Velu feels that people were sceptical about buying made in India equipment, suspecting the quality. Trivitron hopes to clock a revenue of Rs 1000 crore by 2012.