Kotak Investment Advisors Limited, Kotak Mahindra Group’s alternative assets arm, announced on Tuesday that it has invested up to $47.9 million in medical equipment company Biorad Medisys through its Strategic Situations India Fund II.
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Biorad Medisys, with production facilities in Pune, Maharashtra and Bengaluru, Karnataka, manufactures and sells orthopaedic implants for knees and hips, as well as surgeries and consumables for urology, gastroenterology, and neurovascular intervention.
The cash would be used to establish a new manufacturing unit, repay existing debt, and meet rising working capital requirements.
“The Indian medical devices industry is at an inflextion point, with increasing demand for quality healthcare along with the government’s support for domestic manufacturers through the ‘Make in India’ campaign”, said Kotak Strategic Situations India Fund CEO Eshwar Karra.
Biorad Medisys’ funding comes as India experiences unprecedented demand for healthcare due to an ageing population and increased disposable budgets.
Among other medical device producers in India, Bengaluru-based Forus Health has begun discussions with a number of private equity firms to raise cash as it seeks to expand operations and create an exit strategy for some of its investors. Separately, Tynor Orthotics is thought to be in negotiations with Singapore state investor Temasek Holdings about raising funds as it seeks to increase exports.
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Most recently, global investment company KKR agreed to buy Indian medical equipment maker Healthium Medtech from Apax Partners.
In June, Kotak’s Strategic Situations Fund II closed for the first time at $1.25 billion. The exceptional circumstance Fund’s investment goal is to create target returns by primarily investing in distressed, stressed, or exceptional circumstance opportunities in India.
The fund’s investments include OmniActive Health Technologies, Jindal Stainless Steel, HKR Roadways, and Prius Commercial Projects.
About Biorad Medisys
Biorad Medisys is a renowned global specialty producer with a diverse line of implants and surgical instruments.
