Updated on 5 November 2012
Fidelity invests $75 mn in Trivitron Healthcare
Bangalore: Fidelity Growth Partners India (FGPI) has provided a round of investment of approximately $75 million (Rs400 crore) to Trivitron Healthcare. This investment also provides partial exits for ePlanet Ventures and Headland Capital, who have been invested in Trivitron since 2007.
For the past 15 years, Trivitron has been India's largest exclusive pan-India wholesale distributor and after-sales support provider of medical equipment and devices. Its areas of expertise include imaging, lab diagnostics, cardiology, critical care,renal care, operating room and ophthalmology equipment.
Trivitron Medical Technology Park, a 25-acre state-of-the-art manufacturing facility in Chennai, was established in 2009 to house over 15 different medical technology manufacturing facilities of Trivitron's subsidiaries and joint ventures;Trivitron's joint ventures with Hitachi-Aloka (Japan) for manufacturing ultrasound equipment and with Biosystems (Spain) for lab diagnostics reagents are already operational.The company has recently set up centres of innovationfor biomedical equipment in collaboration with the Indian Institute of Technology (IIT), Chennai and under the leadership of its Director (R&D), Prof Bhuvaneshwar, a wellrecognized innovator in this area.
The funds will be used to increaseTrivitron's shareholding in Kiran Medical Systems, an international player in imaging accessories, expanding operations at Trivitron Medical Technology Park, and enhancing the company's distribution operations in South East Asia, Middle East and Africa.
Trivitron was founded in 1997 by Dr G S K Velu. Additionally, DrVelu has co-founded and built the country's leading path lab chain, Metropolis Healthcare, as well as Medfort, a chain of single specialty, eye-care and diabetes-care hospitals. He has also co-founded a joint venture with the Apollo Hospitals Group for dental clinics(Apollo White) and dialysis centers (Apollo Dialysis).
Commenting on the transaction, Mr Raj Dugar, senior MD, FIL Capital Advisors, the private equity advisory arm for FGPI, said that, "The medical equipment sector in the country is still nascent and dominated by imports. We believe that India will follow the same evolution trajectory as other emerging markets like China where large, indigenous manufacturers of medical equipment have emerged over the past decade. Trivitron is well positioned to capitalize on this trend with its unparalleled distribution and service infrastructure that is difficult to replicate."
Dr Velu said, "We are excited to have Fidelity as new investors and board members in Trivitron. Fidelity with its vast knowledge in the medical devices space in China, US, and Europe will be able to add substantial value to Trivitron in becoming a global player in the imaging and lab diagnostics segments.Fidelity's long-standing experience in China would also help us in making in-roads in the value segment."
Kotak Mahindra Capital, the investment banking arm of Kotak Mahindra Bank, was the exclusive advisor to Trivitron on the transaction. Amarchand & Mangaldas & Suresh A Shroff & Company acted as the company's legal counsel.