Private Equity major India Value Fund Advisors (IVFA) has invested Rs 150 crore for a minority stake in Chennai-based medical equipment manufacturer Trivitron Healthcare Pvt Ltd. 

“Trivitron has a strong brand, an excellent track record in serving customers through a combination of cutting edge medical technology, cost effective and innovative new products and seamless after sales service in medical industry in India,” said Vishal Nevatia, managing partner, IVFA.  

VCCircle had first reported that IVFA is close to picking up stake in Trivitron for Rs 125-150 crore on September 17, 2013. 

Trivitron, which was started by GSK Velu in 1997, has eight manufacturing facilities in the country and manufactures products like ultrasound equipment, analog and digital X Ray, ECG Machines and patient monitors.

As part of the transaction, Mahesh Krishnamurthy and Siddharth Dhondiyal from IVFA have joined as director and observer on the board of the company, respectively. Dhondiyal is director (investments) at IVFA. 

IVFA was advised by BMR Advisors, PricewaterhouseCoopers and DSK Legal for this deal while Trivitron was advised by Veda Corporate Advisors. 

Speaking about plans of Trivitron in the future, Dhondiyal told VCCircle, “Trivitron will continue to pursue its vision of promoting cost-effective medical technology products and services and increasing access to affordable healthcare in emerging markets. The  capital will be used to expand its manufacturing footprint in India in the imaging, diagnostics and critical life support systems (CLSS) segments; develop innovative low-cost products for India and strengthen its sales and service network to expand its reach in India and overseas. The company is adding two more manufacturing units to its 25-acre Trivitron Medical Technology Park in Sriperumbudur. 

According to Dhondiyal, Trivitron will continue to evaluate acquisition opportunities that are aligned with its growth strategy.  

In 2012, the company acquired Finland-based Ani Labsystems Ltd and its group companies for $22.2 million. Trivitron has also acquired stake Kiran Medical Systems in 2011.  

“With the right kind of government support, India can become a global destination for med-tech manufacturing and R&D to reduce its dependence on imports which currently account for 80 per cent of the medical equipment used in the country,” GSK Velu said. 

Through this transaction, IVFA joins the existing investors of the company Fidelity Growth Partners India (FGPI) and Fidelity Biosciences (the US). In 2012, FGPI invested $75 million in the company.

This is sixth investment for IVFA which invests in mid-sized business. The PE player has earlier invested in biotech company Biocon, third party administrator TTK Healthcare, and multispecialty hospitals Care, DM Healthcare and Manipal.

(Edited by Joby Puthuparampil Johnson)

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