Motilal Oswal Alternates has acquired a significant minority stake in medical diagnostic equipment manufacturer Sensa Core for $72 million, the companies announced in a statement on Monday.
The investment will enable Sensa Core to accelerate product development and expand its footprint globally, further strengthening its position as one of the leading players in the in-vitro diagnostic segment.
The companies did not disclose the size of the stake acquired.
“India imports over 75% of its medical devices, with annual imports exceeding USD 8.5 billion. We firmly believe in fostering indigenous development and manufacturing in India for local needs and for ‘Make in India’ exports to the world,” said Rohit Mantri, managing director and co-head of Private Equity at Motilal Oswal Alternates.
Founded by Dr Ravi Kumar Meruva in 2006, Sensa Core is engaged in design (IP-driven), development, manufacturing and distribution of specialized in-vitro diagnostic devices.
The company claims to be a market leader in electrolyte analysers, achieving wide adoption across more than 40,000 hospitals/diagnostic labs in India, as well as exports to over 78 countries. It is also reportedly one of the leading Indian players in glucometers, haemoglobinmeters and has recently forayed into arterial blood gas analysers.
“With a strong focus on expanding access to healthcare, we believe affordability can be achieved through local manufacturing and large-scale production,” Meruva added. Sensa Core was advised by Veda Corporate Advisors on the transaction.
The company operates a dedicated manufacturing facility in Hyderabad’s Export Promotion Industrial Park, Pashamylaram and will be commissioning a new manufacturing facility in Medical Device Park, Sultanpur, to augment capacity & build capability for new products, the statement said.
Meanwhile, Motilal Oswal Alternates manages private equity and real estate funds and cumulatively handles assets of about $3.1 billion between the two asset classes.
The private equity vertical focuses on providing growth capital to mid-market companies across its preferred sectors of consumer, financial services, life sciences and niche manufacturing. Earlier this year, the private equity firm launched its fifth fund with a first close of $800 million.
Source: Mint