Poly Medicure, which manufactures medical consumables for different therapies from oncology to blood collection, is looking to sign up for the government’s Production Linked scheme for medical devices. At present, India imports roughly 80 percent of its requirement of medical devices. The government is hoping that the PLI scheme announced in October will help boost local production of cancer care, radiology and imaging devices, amongst others.
Poly Medicure is looking to focus on the renal care space, which means manufacturing dialysis machines. Currently, India imports up to 90 percent of renal care medical consumables. Poly Medicure’s estimates an investment of around Rs 150-200 crore for the renal care device foray. The company recently approved a Rs 400 crore Qualified Institutional Placement (QIP), which should help meet the funds requirement.
Poly Medicure also sees potential in medical consumables for the diagnostic and cardiovascular space.
The company’s shares have doubled this year, a key trigger being the company’s foray into COVID-19 related medical consumables.
The company was initially impacted due to the lockdown as elective surgeries fell. However, according to analysts, the company revived its sales by introducing products under a COVID-19 portfolio such as face protective shields, N 95 Masks and viral collection and transport kits. For the quarter gone by, the company sales rise almost 15 percent with margins expanding almost 400 bps to 28 percent with profit up over 20 percent.
The company continues to be confident on growth and has guided for 12-15 percent growth in FY21 and 18 to 20 percent growth in FY22. Growth will be supported by two new plants, one in in Faridabad and another in Jaipur coming on stream. It will also invest in two greenfield projects which are expected to come up by FY23. Poly Medicure also seems to be confident about the European region. It recently won some new contracts in UK, is expecting more business in Europe and is looking at acquisitions in the region.
(Edited by : Mousumi)