Poly Medicure to deploy Rs 1,000 cr fundraise for capex, future buys

The company is looking at portfolio expansion and increasing the number of products being added each year

Medical devices company Poly Medicure (Polymed) is exploring acquisitions in the technology sector and capital expenditure (capex) after raising Rs 1,000 crore through a qualified institutional placement.

Himanshu Baid, managing director of Polymed, said Rs 250 crore has been allocated for acquisitions, particularly in the technology field, while another Rs 250 crore will be used for general corporate purposes.

“We are keeping it open for now since we operate in a global market. We will look for companies offering technology where we can scale up the business,” he added.

Baid explained that the medtech industry has a long gestation period, with a couple of years needed to set up a new plant and an additional year and a half for regulatory approvals and clinical trials. This requires deep investments, making acquisitions a quicker route to growth.

“Therefore, half the money raised is being deployed for new capex, which will begin now and be completed by the end of 2025-26,” Baid noted.

The company is also focusing on portfolio expansion and increasing its product range. “We operate in six core therapies: infusion therapy, vascular access, transfusion systems, cardiology, critical care, and renal diagnostics. In each core category, we plan to add two to three new products every year,” Baid said.

Polymed is also increasing investments in research and development to accelerate the introduction of new products.

The company also plans to expand in three or four business areas it entered in recent years, such as cardiology, critical care, and renal diagnostics. This expansion will be on the manufacturing side to grow its footprint.

“In cardiology, we aim to grow our presence in interventional cardiology and later expand into cardiac surgery products, as well as structural heart and electrophysiology devices,” Baid said.

“By the end of this year, we expect to capture 12-13 per cent of the renal market in India, and we now aim to expand this business globally,” he added.

While 70 per cent of the company’s revenue came from exports in 2023-24, it plans to further extend its global reach.

“We are looking to push further into the European market, which currently accounts for around 30 per cent of our export revenue. The next key markets will be the US and Latin America,” Baid said.

The focus, Baid added, will remain on these highly regulated core geographies.