Poly Medicure is all set to expand its business within the Indian market as well as oversees. Himanshu Baid, MD, Poly Medicure, shares the business plan
Poly Medicure is soon going to set up a manufacturing plant for nephrology products. Can you comment on the same.
Yes. The operations of this plant will be commencing in September or October and the focus of the plant is to manufacture consumables in the nephrology space where we see a huge potential for growth under the Make in India campaign.
You also have your business in China and Egypt. How are these market different from India?
China and India have a similar population strength. However, the per capita consumption of medical devices of China is 10 times more than India. The reason behind this is that the Chinese government has spend around $125 billion in the last few years just to create an infrastructure for healthcare. So, they have built new hospitals and services as well as created a demand for medical equipment and devices. Whereas in India, the government’s focus in this space is very minimal.
Similarly, in Egypt the per capita consumption of medical devices is atleast two times higher than India. Therefore, it makes sense to us to do business in these markets.
What is your opinion about the Indian market as compared to the other markets that you operate?
Currently, China is a bigger market to do business. However, the larger chunk of our business comes from India, and therefore, we will continue to focus in this market. Nevertheless, India has great prospects in the future. The market and the demand for medical devices is growing.
Is there any plan to venture into other markets?
Yes. We are looking at venturing into Europe in order to be close to our customers. Europe is the biggest market for exports. Therefore, we aim to foray into the Western European markets, in countries namely, Germany, France, Italy and the UK.
Will you take the acquisition route to expand to the Western European market?
Expansion in this region will have to be through acquisitions only as we do not plan to set-up a green field project. We have involved two consultancy companies based there, who will help us to shortlist companies for acquisition.
What is your opinion on the impact of GST on medical devices?
I feel that GST rate should be uniform for medical devices. Currently, there is a lot of abiguity in terms of the rate for various kinds of medical devices and dignostic equipment. These products should have a minimum GST ranging between 5-12 per cent. Presently, there is a lot of confusion with regards to pricing of equipment and devices due to the application of GST. This should not disrupt the supply of products and the services. In the long run, there could be a slight price increase of medical devices. We are still reading the fine print and trying to understand its nuisances.