Trivitron JVs with intl cos. to set up India's first Medical Technology Park (MTP)

Trivitron, which makes medical technology products, has inked three joint venture (JV) deals with Japan-based Aloka Company Ltd. (the innovator in ultrasound), Biosystems of Spain and Brandon Medical of the UK that would see India, for the first time, produce its own high-end, cost-efficient medical technology products, including critical care equipments.

While Trivitron would hold 40 percent stake in the JV deal with Aloka, in the other two deals with Biosystems and Brandon Medical, it would hold 60 percent and 51 percent stakes respectively.

According to Dr. G.S.K. Velu, managing director, Trivitron, an initial investment of Rs.250 crore (approx. $60 million) would be made to set up the park, which would stretch over an area of 23 acres in Irugattukottai, Chennai. While Trivitron would invest Rs.170 crore ($42 million), the remaining amount would be invested by the three joint venture partners.

The park would focus on developing medical technology products, making medical instruments to the rural people both affordable and accessible, Velu said, adding that about 3000 people would be employed in the next 3 years.

Initially, the focus would be on catering to the needs of the domestic medical equipment market (estimated to be worth $3 billion) and depending on the response, emerging markets in South Asia, West Asia and Africa would also be tapped.

Trivitron, which plans to convert the park into a SEZ to avail of tax benefits, said that for the first time, India will begin manufacturing medical technology equipments. While, all other related fields focusing on medical technology have developed in India, presently, most medical instruments are still being imported due to lack of high-quality cost-effective home-grown branded products. Manufacturing the products in India for domestic use would reduce their prices by 30-50 percent, Velu claimed.

"India is 30 years behind (global standards) in high-end medical equipment. Imagine where does a patient have to lie for at least five minutes under low-frequency X-ray machine to get a proper image- Now digital X-ray machines made in India will just need 20 seconds for the purpose," Velu said, adding that India would emulate the success of China, which a decade ago, was importing medical equipments and now is one of the world's largest maker and exporter of medical equipments.

The MTP will have an electronics and electro-mechanical manufacturing unit for production of various medical technology products, including ultrasound scanners and color dopplers, operation theater lights, operation tables, ventilators and other breathing apparatus, infusion and syringe pumps, clinical laboratory equipments and neonatology equipments.

The Park will also house a state-of-the-art diagnostics reagents manufacturing unit for full-fledged production of hematology reagents, clinical chemistry reagents and immuno-turbidimentry reagents.