Fidelity commits $74m to India’s Trivitron Healthcare

The investment facilitates the partial exit of Headland Capital Partners and ePlanet Ventures. The two firms committed INR450 million to Trivitron in 2007 for an undisclosed stake.

The company was founded in 1997 by Dr G.S.K. Velu, who was previously country head for Chiron Diagnostics. Trivitron has become India's largest distributor of medical equipment and devices, with products spanning imaging, cardiology, renal care and ophthalmology. It also provides after-sales support.

The revenue target for the 2013 fiscal year is INR7 billion, to be reached through organic and inorganic routes.

It was reported last year that Bain Capital, TPG Capital and TA Associates were all interested in purchasing a 10-12% holding in Trivitron for INR1.5-2 billion. This came as the company acquired a stake in Mumbai-based Kiran Medical Systems as well as being engaged in talks with a European medical devices business worth up to $27 million.

India's healthcare sector as a whole is worth $40 billion and seeing compound annual growth of 15%. It is expected to reach about $120 billion by 2015 and continue to double twice in the coming 10 years. In the first four months of 2012, private equity firms committed $448 million to Indian healthcare companies across 12 deals. Hospitals and healthcare centers were the primary target.

One concern raised about medical equipment was that few companies are of sufficient size to facilitate private equity exits, while imports account for more than 70% of the market, which leaves little space for local companies to scale up.

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• Topics
• Healthcare
• South Asia
• Expansion
• India
• healthcare
• Growth capital
• Fidelity Growth Partners India