Poly Medicure Targets 20-22% Domestic Growth With Acquisitions In Next Six-Eight Months

Poly Medicure Ltd. is likely to see growth rate of 20-22% in the domestic market in the current financial year, according to the company’s Managing Director, Himanshu Baid. The company has raised Rs 1,000 crore through qualified institutional placement and plans to use the funds for acquisitions as part of its growth strategy.

Outlining the company’s plans, Baid said, “We are setting up three new plants, which will focus on expanding our dialysis, renal, cardiology, and critical care businesses. Most of the products we plan to manufacture will serve as import substitutes, which is where a substantial portion of the investment will be directed.”

For the company’s domestic business growth, Baid provided an optimistic outlook, saying, “For the current year, we project a growth rate of 20-22% in our domestic market. We are witnessing strong momentum as the healthcare sector in India continues to expand, and our presence in large hospitals is increasing. This growth trajectory positions us well to achieve our target of 20-22% growth by year-end.”

Poly Medicure raised Rs 1,000 crore through a QIP. The company’s board approved allotment of 53.19 lakh equity shares to eligible qualified institutional buyers.

Baid also noted that part of the raised funds will be allocated for potential acquisitions in the next six to eight months, alongside other general corporate purposes.

As Poly Medicure continues to expand its footprint, it is also eyeing significant opportunities in global markets. The company has received approval from the United States Food and Drug Administration for four products, while an additional 8-10 products are currently awaiting approval. On this, Baid said, “We’ve already begun sales in the US market this quarter, building on the foundation of products we were previously selling. The newly approved products have also started generating revenue, though we haven’t provided specific guidance for this year. However, over the next 3-4 years, we anticipate revenue from the US market to reach around $15-20 million. For this year, we expect to see revenue in the range of $2.5-3 million.”

In the domestic market, Poly Medicure is adjusting its strategy to focus more on the private sector, moving away from reliance on government contracts.

“Today, 75% of healthcare is in the private sector. The government is now more of a payer than a provider, especially with initiatives like Ayushman Bharat. So, for us, the momentum will shift towards the private sector. The private sector is growing much faster than the government sector, and that’s why we are concentrating our efforts there,” Baid said.

He said Poly Medicure was currently operating at over 75% capacity across its plants, with the potential to reach up to 80%. The company was well-positioned to meet increasing demand, both in the domestic and international markets, particularly as global companies seek alternatives to China, said Baid.

“I believe demand outside India is growing rapidly, particularly as the ‘China plus one’ strategy gains traction. With no new significant investments flowing into China over the past few years, both Poly Medicure and India are well-positioned to attract new investments and customers in the medtech sector. China’s medtech market stands at $150 billion, while ours is just $15 billion, presenting a substantial opportunity for us to expand into global markets,” he said.

On margins, Poly Medicure is targeting an improvement over the next few years. “We have already guided for a healthy Ebitda margin, aiming for 27-27.5% this year, with a target to reach around 30% in the next two to three years,” Baid said.