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| Opto to invest Rs 200 cr for units in Vizag, Malaysia |
| BS Reporter / Chennai/ Bangalore Dec 08, 2009, 00:16 IST |
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The Bangalore-based Opto Circuits India which manufactures and markets medical devices, is looking at a capex of around Rs 200 crore in the next one and half years for setting up manufacturing units in Vizag and Malaysia.
Opto had raised Rs 400 crore through the QIP route in September this year of which around Rs 230 crore was used to clear its debt. The rest will be utilised for the new units where the company will look to manufacture invasive and non-invasive medical devices. Invasive devices involve insertion of medical devices into body while non-invasive is the opposite. The company did not provide a break-up of investment into the two units as details are yet to be worked out.
“We wanted to be in an SEZ so we have taken a few units in the government SEZ in Vizag totalling around 30,000 sq feet. We have started trial runs. Similarly, we want to take up units in an existing facility in Malaysia of 20-30,000 sq feet,” said Valiveti Bhaskar, director of Opto Circuits.
He said it was not possible to quantify the existing and upcoming manufacturing capacity since it depended on the size of the order. The company does not have plans to raise funds in the immediate future. Opto has a two-month order book of Rs 125 crore.
Production is expected to start in Malaysia by the middle of February 2010 while full scale production at the Vizag unit could start by January 2010. It has a full-fledged manufacturing facility in Electronics City, Bangalore, which has a 100 per cent EoU status.
Non-invasive medical device business forms majority of revenues for the company, at 75 per cent while the rest comprises of invasive devices business. The company manufactures patient monitoring devices like pulse oximeters, multi-parameter monitors, sensors and such other devices in the non-invasive category while it manufactures stents, balloons and catheters in the invasive category which are distributed in the US, Europe, east and west Asia, and South Africa.
Opto Circuits recorded a turnover of Rs 818 crore in March 2009 which is expected to rise to Rs 1,000 crore in March 2010. Promoters hold a 27.47 per cent of the company, institutional investors 42.85 per cent and others 29.68 per cent.
Over the last few years, the company has taken the inorganic route to increase its global footprint. In 2005, Opto acquired Eurocor of Germany, a stent design and development company, and in 2008 it acquired Criticare of US, a manufacturer and distributor of proprietary, and branded anesthesia and respiratory gas monitors. The company will use the units at Vizag and Malaysia to manufacture and distribute its products.
The company has just launched five new products, three from its Wisconsin-based subsidiary Criticare Systems Inc and two from Bonn-based subsidiary Eurocor GmbH. The products are aimed at strengthening the company’s footprint in markets like Europe and South Asia. It is targeting the $4 billion market for non-invasive products and $5 billion market for invasive products.
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