Small medical device makers to set up common facility

Form a Special Purpose Vehicle and apply for subsidy from the Union govt

Making a unique effort, around 20 small scale medical device manufacturers in the state have drawn up plans to set up a common component manufacturing facility near Ahmedabad.

The facility would supply components to all these companies who have come together to form a special purpose vehicle (SPV) named Ahmedabad Medical Disposable Devices Pvt Ltd.

The SPV is scouting for land near Ahmedabad, informed Mitesh Vyas, owner of Jimit Medico Surgicals, and a member of the group.

The investment on the common component manufacturing facility would be to the tune of Rs 15 crore.

The SPV, meanwhile, has applied for subsidy from the Union ministry of commerce through the state industries commissioner.

"An in-principal nod from the Centre is expected within a month. Under the Central scheme, 70 per cent of the total equipment cost is funded by the Centre in the form of subsidy. This works out to be roughly around  Rs 10 crore", Vyas said.

D L Pandya, advisor to the SPV and owner of a medical devices industry publication, said that the feasibility study for the project has been conducted by Gujarat Industrial and Technical Consultancy Organisation Limited (GITCO). "The common component facility will certainly help to improve quality of the products", he added.

The SPV might ask for land at the medical devices cluster planned at the Gujarat Industrial Development Corporation (GIDC) estate, however, nothing is firmed up yet. Vyas says, "We are looking for a small land parcel near Ahmedabad, and the Sanand GIDC is an option."

The group also plans to import machinery from Korea, Germany and China.

"By pooling in resources, we would be able to achieve quality control of the components manufactured, and, in turn, used by the member companies. Most of the 20 companies export their products to several emerging economies, and it is essential to have quality control of the finished product", Vyas explained.

His firm Jimit Medico Surgicals, which has a manufacturing unit at Vatva, makes intra-venous infusion sets, blood administration sets, scalp vein sets among various other products. It exports to around 20 countries.

Gujarat used to have an 80 to 90 per cent share of the overall medical devices industry in the country around a decade back. The state's share has dipped to around 60 per cent of the national turnover at present.

"The overall production has not reduced in Gujarat, but other states have increased their share. The Natioanl Capital Region (NCR) is now a big producer of medical devices. Gujarat's growth rate in the segment has slower compared to other states", Vyas said.

According to industry estimates, the net medical devices industry in the country is pegged around ' one lakh crore at present.