Diagnostic Equipment Company Trivitron Raises $11 Million in Venture Capital Investment

Chennai-based diagnostic equipment company Trivitron Medical Systems Pvt Ltd will get a funding of $ 11 million from HSBC Private Equity and venture capital firm ePlanet Ventures.

According to reports, an HSBC PE entity, HSBC Asian Ventures Fund 2 Ltd, and ePlanet will get a minority stake in Trivitron, which plans to utilize the funds for acquisitions and joint ventures and also for developing a medical technology park in Chennai.

The medical technology park, likely to be located in Sriperumpudur in Chennai, is being built with an investment of approximately $60 Million. The 25-acre park will promote indigenization of medical technology in India. Currently the medical technology industry imports account for $ 2.7 billion, of which medical equipment contributes 90 per cent. The new park is intended to indigenize this industry.

Besides the private equity funding, the company has also raised $30 Million from internal accruals and bank borrowing, the report says. Trivitrons technology partners too have chipped in with $30 Million for the technology park project.

With an existing portfolio of more than 15 companies in the healthcare and life sciences arena, coupled with a dedicated team, ePlanet, has special interests in this sector, says ePlanet Ventures Managing Director, Chandrasekar Kandasamy. Our strong focus, especially in the healthcare devices space, could provide significant value add to Trivitron and help them in identifying and acquiring companies in the healthcare space worldwide.

Speaking on the occasion, G.S.K Velu, managing director of Trivitron Group of companies says, The Indian medical technology industry accounts for an expenditure of $2.7 billion with $2.4 billion of it accruing towards imports alone. The medical technology park will be the first step towards indigenization of medical equipment manufacturing in India thereby making India one of the leaders among other medical equipment manufacturers around the world.

Trivitron exemplifies our strategy of investing in companies with a potential to become category-dominant leaders, that apply innovative business models, and harvest the benefits of being first-movers, commented Asad Jamal, Chairman and CEO of ePlanet Ventures. We are very pleased to add Trivitron to our global portfolio, and intend to ramp up investment activity in India going forward.

For more information, please visit www.trivitron.com