Please note following is my notes from past study, the primary source is DRHP industry section and followed by search in general.

Indian Medical Devices Industry

As of 2020, the medical devices market is estimated to be at US$ 12 billion in India. The Indian market for medical equipment is predicted to increase to US$ 50 billion by 2025.

• Between 2020-25, diagnostic imaging is likely to expand at a CAGR of 13.5%

The Indian medical devices sector is broadly classified into 5 segments – Electronics equipment, Surgical instruments, Implants, IVD (In-vitro Diagnostic) devices/reagents and Consumables & Disposables.

India has a 75-80% import dependency on medical devices, with exports of US$ 2.53 billion in FY21, which is expected to increase at a CAGR of 41% to reach US$ 10 billion by 2025. Domestic manufacturing is largely focused on low-cost- high volume segments (like Consumables and Disposables)

• 100% FDI is allowed in the medical devices sector in India. Categories such as equipment and instruments, consumables, and implants attract the most FDI.
• PLI scheme for domestic manufacturing of medical devices, with a total outlay of funds worth Rs. 3,420 crores (US$ 468.78 million) for the period FY21-28.
• Total committed investment of ~Rs. 729.63 crore (US$ 100.01 million) by the companies Siemens Healthcare Private Limited, Allengers Medical Systems Limited (AMSL), Allengers OEM Private Limited (AOPL), Wipro GE Healthcare Private Limited, Nipro India Corporation Private Limited, Sahajanand Medical Technologies Private Limited, Innvolution Healthcare Private Limited, and Integris Health Private Limited, and generate ~2,304 jobs.
  • Most of these players are doing research with collaboration in IIT/NIIT and another top university in India.
• Introduction of Medical Parks – Noida, Himachal Pradesh, and UP has proposed to set up parks that will bring in an investment of ~10000 crores.
• Indian Council of Medical Research (ICMR) collaborated with the Indian Institutes of Technology (IITs) to establish ‘ICMR at IITs’ by setting up Centres of Excellence (CoE) for Make-in-India product development and commercialization in the medical devices and diagnostics space
  • The CoEs are a major initiative that will help to improve the health of the Indian population. They will make high-quality medical devices and diagnostic tools more affordable and accessible to patients and healthcare providers across the country. This will help to improve the quality of care and reduce the cost of healthcare in India.

Policy Support and Government Initiatives

The government announced Rs. 64,180 crores (US$ 8.80 billion) outlay for the healthcare sector over six years in the Union Budget 2021-22 to strengthen the existing ‘National Health Mission’ by developing capacities of primary, secondary and tertiary care, healthcare systems, and institutions for detection and cure of new & emerging diseases.

• The Government of India approved the continuation of ‘National Health Mission’ with a budget of Rs. 37,000 crore (US$ 4.85 billion) under the Union Budget 2022-23.
• The Indian government is planning to introduce a credit incentive program worth Rs. 500 billion (US$ 6.8 billion) to boost the country’s healthcare infrastructure.
• Pradhan Mantri Swasthya Suraksha Yojana – In the Union Budget 2022-23, Rs. 10,000 crore (US$ 1.31 billion) was allocated to the scheme. The Government of India will use this money to boost the medical education infrastructure of the country and set up AIIMS across the country.
• PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) – In the Union Budget 2022-23, Rs. 5,156 crore (US$ 675.72 million) was allocated to the newly announced PM-ABHIM to strengthen India’s health infrastructure and improve the country’s primary, secondary and tertiary care services.

The Union Cabinet approved setting up of the National Nutrition Mission (NNM) to monitor, supervise, fix targets and guide nutrition-related interventions across ministries. Over 100 million people are expected to be benefited by this program – the program will cover all states and districts.

• In the Union Budget 2021-22, the government announced its plans to launch ‘Mission Poshan 2.0’ to merge ‘Supplementary Nutrition Programme’ with ‘Poshan Abhiyan’ (Nutrition Mission)

The Ministry of Health and Family Welfare’s eSanjeevani telemedicine consultation service crossed 3 crore teleconsultations as on March 25, 2022.

Ayushman Bharat – Ayushman Bharat-Health and Wellness Centres, Ayushman Bharat Health Account and Ayushman Bharat Digital Mission.****

In BioAsia 2021, key stakeholders in the panel discussion on medical technologies stated that India would become self-sufficient in domestic medical device manufacturing by 2025-26

Few Companies which are listed or come with IPO proposal

Poly Medicure Ltd. (POLYMED) is a leading player in the organized medical disposable devices market with strong brand positioning due to high-quality products used in infusion therapy, blood management, surgery, dialysis, and other segments. POLYMER is the largest exporter of medical devices from India. POLYMED is among the top three IV Cannula manufacturers in the world and the first indigenous dialyzer manufacturer

• Company extremely export-oriented company

Hemant Surgical Industries Limited – manufacture, import, assemble and market a comprehensive portfolio of medical equipment and disposables. Our product offerings cover a wide spectrum of equipment and disposables required for (i) Renal Care, (ii) Cardiovascular Disease (iii) Respiratory Disease, (iv) Critical Care and Radiology, and (v) Surgical disposables.

• It acts as a distributor for some of the international player few things they assemble in India but no much value-added manufacturing happen within the company.

Opto Circuits offers a wide range of medical devices, including cardiac monitoring systems, patient monitors, infusion pumps, and surgical instruments. The company’s products are used in hospitals, clinics, and other healthcare settings.

• Recently time company facing an extreme debt burden and stiff computation from it peers. This was the darling of the market but the company could not handle debt, This is one my biggest mistakes in my investment journey. You can call Suzlone of Medical Device.

There is limited called players in India if they have they are not listed in the market. This sector will enjoy the India health infra-building initiative. I need to find a way how to study the trend change in the sector which could impact the hospital or diagnostic industry for health service.