Medical devices firm Biorad Medisys open to strategic investors to fund expansion and R&D push

Medical devices

Biorad Medisys, one of the fastest-growing medical devices firm, said it is open to raising funds from private equity or strategic investors to support capacity expansion and foray into newer geographies.

“We never shut the door. We will require funds going forward to take the company to the next level,” JM Hegde, Managing Director of Biorad Medisys told Moneycontrol in an interview.

The Pune-based company raised Rs 350 crore last year through optionally convertible debentures (OCDs) from Kotak Strategic Situations India Fund II for repaying previous debt, and to fund ongoing capex - including two greenfield facilities in Bengaluru and Shirwal – along with plans to acquire assets to expand Biorad’s footprint both in India and abroad.

“These facilities will cater to five years of demand across urology, gastroenterology, and robotics,” Hegde added.

Biorad is developing a medical device park on a 30-acre plot near Pune, in Maharashta, with plans to scale it up to 100 acres. “We want to build a complete ecosystem, not just manufacturing, but innovation, training and global outreach,” Hegde said.

The growth trajectory has been steep, with revenue surging from Rs 230 crore in FY23 to Rs 360 crore in FY24, and projected to cross Rs 550 crore in FY25. “We’ve grown at a CAGR of 56% over the last three years,” Hegde said, attributing the momentum to product acceptability, government partnerships and a robust exports.

Biorad’s exports account for 28% of its revenue, with the Indovasive (consumable) division leading the charge. The medical devices firm has entered the European market and is registering its orthopaedic products across geographies, including Russia and Vietnam. A recent acquisition in Switzerland is expected to accelerate its international footprint.

The company is also investing heavily in R&D, spending 4% of its revenue annually and employing over 200 engineers. It has pioneered 3D-printed implants in India and is developing its own surgical robot in collaboration with ETH Zurich, a leading university.

With aspirations to become a billion-dollar global player, Biorad is positioning itself as among the top 10-15 medical device companies worldwide. “We already have a presence in over 50 countries. Our diversified platform and value manufacturing in India will make a huge difference globally,” Hegde said.

Biorad Medisys was founded in 2000 in Bengaluru by a group of NRIs and doctors to manufacture affordable cardiac catheters in India. However, the company struggled to commercialize its products and was later acquired by JM Hegde in 2007, who restructured its operations and repositioned it as a high-tech medical device manufacturer.

Biorad now develops and manufactures a wide range of medical devices across orthopedics, urology, gastroenterology, neurology and emerging segments like robotics, stroke rehabilitation, and digital health. Its portfolio includes orthopedic implants such as knee and hip joints, surgical consumables, scopes, pumps, and 3D-printed implants, with a growing presence in both domestic and international markets.

The Indian medical devices market was valued at $12 billion (Rs 1.02 lakh crore) in FY24 and is projected to grow to $50 billion by 2030, reflecting a robust compound annual growth rate (CAGR) of 16.4%. This growth is driven by rising demand for healthcare infrastructure, increased health awareness and policy support including 100% FDI allowance and the establishment of medical device parks and export councils.

India is currently the fourth-largest medical devices market in Asia, after Japan, China and South Korea, and ranks among the top 20 globally. Yet, the country still relies on imports for 70-80% of its medical device requirements, presenting a significant opportunity for domestic manufacturers to scale up. The sector is getting increasing attention from global private equity players and pharmaceutical companies looking to expand into allied areas of healthcare.