Indian Stent Maker Translumina sells stake to PE Everstone for Rs 500 crore: Report
Mumbai: Cardiac stents and cardiovascular medical devices maker, Translumina Therapeutics is reported to have sold its minority stake to Private Equity firm Everstone in a deal worth Rs 500 crore.
As per a recent media report by Economic Times, the funds raised in this deal will be utilised by Translumina in expanding the company's footprints on a global platform. The amount will be invested in buying global assets, augmenting its RnD efforts. Besides, the Indian manufacturing capabilities and enhancement of the company's distribution ecosystem will also be worked upon using the fund.
The Indian Stent market, one of the largest in the world, underwent a major change in the year 2017 when the government announced a blanket price cap on cardiac stents according to their category. The price cap immediately hit the MNCs forcing many to withdraw their stents from the Indian Market. The move turned to be a golden opportunity for Indian Stent makers and domestic manufacturers have now increased their shares in the market which now stands at 60%.
Read also: Abbott decides to withdraw 2 stent types from India
Translumina, which currently ranks among the top three domestic stent makers owns around 15 per cent share of the Rs 1,500 crore stents market in India. The company had created its first drug-eluting stent from India for the world in partnership with the German Heart Centre in Munich in 2011.
Prior to this, while expressing about the company's planning to fund its future expansion, Chairman, Translumina, Gurmit Singh Chugh had stated "To scale up our international presence we need investments for which we are looking for a large private equity investor. Till now all our growth has been through internal accruals."
Also Read: Translumina eyes 25 per cent of stents market by 2018-end
Arjun Oberoi, managing director at Everstone Group told ET, "Translumina is extremely well-positioned to emerge as a global leader in stents and cardiovascular technologies at highly affordable prices. Everstone's expertise in healthcare will help unlock the company's full potential by scaling manufacturing, strengthening its global distribution and driving new product development."
The company distribute its products in more than 30 countries across the globe.