Chinese healthcare major to enter Indian meditech space

As part of its expansion strategy in South Asia, Chinese healthcare group Golden Meditech Company Ltd plans to foray into the Indian medical and diagnostic equipment market through the distributor-cum-partnership route, according to market sources familiar with the development.

The company is currently scouting for device distributors in India and prefers to partner with established medical distributors in order to overcome the high entry barriers for the sector, sources say. The medical device segment of the company currently contributes the bulk of its revenues.

Golden Meditech’s device manufacturing business unit is, according to sources, keen to partner with research institutions in India to develop personal health monitoring devices and other low-cost medical devices for the Indian market. The company is understood to be open to setting up a joint venture in this direction if required, sources add.

Golden Meditech’s investor relations team did not respond to an email seeking comments on its India plans.

The market for medical equipment in India is valued at Rs 5,750 crore and is expected to grow at around 23 per cent annually for the next few years, according to Technopack Advisors.

The medical device segment of the company is engaged in the development, manufacture, sales and distribution of blood-related medical apparatus and personal health monitoring devices. The segment has focused on the development of technologies for blood recovery, purification, treatment and preservation during surgery.

Golden Meditech’s products include its Autologous Blood Recovery System (ABRS), the Plasma Exchange System and Accelerated Thermostatic Infusion Pump. The company is listed on the Hong Kong Stock Exchange since December 2001. It is 28.11 per cent owned by Bio Garden with the remaining 71.89 per cent held by the public.