Growing opportunities in medical device manufacturing in India

Industrial Update – Newsletter – June 2023

IMAP’s Industrials group brings you this monthly update with a focus on latest news, transactions and interesting snippets from the Industrials domain in India

Growing opportunities in medical device manufacturing in India

Today, the domestic manufacturing of medical devices is estimated to be a ~$5.4 Bn industry, and is estimated to grow 4x by 2030 to reach ~$22.8 Bn. This growth will be driven by the rapid growth in domestic demand as well as opportunities in the export market

Indian Domestic Market

The Indian medical device market is estimated to be ~$11 Bn and is growing at a CAGR of 12.5%. ~77% of this demand is met via imports. As demand grows, import substitution is expected to bring down this share to 50% by 2030

Drivers of this growth include rising affordability, growth in non-communicable diseases and Govt push. Among the measures undertaken by GoI to give a boost to this sector include – allowing 100% FDI, PLI scheme of US$400 million, setting up of 4 medical parks and the recently approved National Medical Devices Policy.

Export Market Potential

Exports of medical devices expected to grow from $2.9 Bn in 2022 to ~$8.7 Bn in 2030 driven by contact manufacturing (low-cost manufacturing from India for global OEMs), geopolitics: (diversification of supply chains from China) and an ageing western population

Some Indian Companies

Some recent transactions

Jun’23Oben Electric VehiclesThe Electric 2Ws manufacturer raised ₹ 40 Cr. in a fund raise led by stride ventures.
Jun’23Lentra AiMUFG Ganesha Fund invested ₹223 Cr. in the ERP SaaS company for a 6.75% stake.
Jun’23Viney CorporationKotak Specialty Fund Invested ₹430 Cr. in the auto component manufacturer
Jun ’23Bluj  AerospaceThe company received ₹18.4 Cr. in funding from Eduniya Partners and Ideaspring Capital
Jun’23Everest  FleetUber Technologies invested ₹165 Cr. in the fleet management company
Jun’23World Of RiverThe electric vehicle OEM raises ₹123 Cr. in a fund-raise led by Al-Futtaim Group

Recent News

  • Ideaforge (drone manufacturer), Cyient DLM (electronic manufacturing company) and IKIO Lighting (LED Light manufacturer) went for an IPO in Jun’23 and saw very robust subscriptions – 106x for Ideaforge, 71x for Cyient DLM, and 67x for IKIO
  • Retail sales of electric two-wheelers in India for June 2023 saw a significant drop to 45,734 units (from 105,338 units in May’23). This was due to buyers rush in May to take advantage of 40% FAME subsidy before it was reduced to 15% on June 1
  • Manufacturing PMI in May’23 increased to at 58.7 compared to 57.2 in Apr’23, the strongest improvement in factory activity boosted by strength of demand; PMI value above 50 indicates growth
  • S&P revised China estimated GDP for 2023 to 5.2% from earlier 5.5% (India is estimated to grow at 6.9%); the central bank in increased rates for the first time in 10 months to prop up the economy

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