Transcript Pharma Healthcare Opportunities - India.pps

mosaiccapital
mergers & acquisitions | private equity
change your perspective
see what makes
the difference
pharma & healthcare
india
- a destination for cross-border m&a
opportunities
a discussion document
march, 2008
private and confidential
the india proposition – select economic criteria

4th largest economy in the world; 2nd largest GDP among the developing countries (based on purchasing
power parity)

over the past 15 years, has been the second fastest growing economy in the world, after China, with an
average annual growth rate exceeding 6.5%

displaced the US as the second-most favoured destination for foreign direct investment (FDI) in the
world after China. (source: AT Kearney's FDI Confidence Index)

probably the most preferred country for
future R&D investments, with slightly
more than 40 percent of CEOs indicating
they will likely make such investments
over the next three years

most mature and well developed capital
markets amongst developing countries
key metrics
2005
Real GDP (% change)
Nominal GDP (US$ bil.)

3-4 years of unabated “bull-run” based on
record corporate growth & earnings have
provided Indian companies the necessary
foundation for expansion with minimal
leverage
modest inflation despite spiraling crude
prices
private and confidential
2007
9.2
8.6
7.9
808.9
897.8
1035
738
808
918
Consumer Price Index (% change)
4.2
5.8
5.7
Wholesale-Producer Price Index (% change)
4.7
4.9
5.4
6
6
7.25
10.75
10.94
10.82
Nominal GDP Per Capita (US$)
Policy Interest Rate (%)
Short-term Interest Rate (%)
25291.9
29424.2
37114.7
Fiscal Balance (% of GDP)
-4.1
-3.7
-3.6
Unemployment Rate (%)
12.8
12.2
11.9
Current Account Balance (US$ bil.)
-9.2
-15.6
-22.4
Broad Money Supply (LCU bil.)

2006
Current Account Balance (% of GDP)
Trade Balance (US$ bil.)
-1.1
-1.7
-2.2
-40.2
-53.9
-65.7
-5
-6
-6.3
Exchange Rate (LCU/US$, end of period)
45.06
44.24
45.12
Exchange Rate (LCU/Euro, end of period)
53.16
58.27
62.26
Trade Balance (% of GDP)
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the india proposition – availability of funds
FDI Inflows
Foreign Capital Inflow (net)
19000
15000
10000
5000
2167
4031
6125
5036
4322
5987
US$ M illion
US$ M illion
20000
7661
0
1999- 2000- 2001- 2002- 2003- 2004- 2005- 200600
01
02
03
04
05
06
07
private and confidential
30000
25000
20000
15000
10000
5000
0
28022
23400
16736
10184
8814
8551
10840
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
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the india proposition – availability of funds
Acquirer
Temasek Holdings
Consort ium
Consort ium
ICICI Vent ure Funds
Carlyle Group
Avenue Capit al
USD 500
Target
Bhart i Airt el
GM R Inf rast ruct ure
Bhart i Inf rat el
Jaypee Inf rat ech
HDFC
SKIL Inf rast ruct ure
M n Plus PE Deals - India
Sector
Telecom
Real Est at e & Inf ast ruct ure M gt
Telecom
Real Est at e & Inf ast ruct ure M gt
Banking & Financial Services
Real Est at e & Inf ast ruct ure M gt
Sect or W ise Break-up - Volume
Value - USD M n
1,906.74
1,000.00
1,000.00
800.00
650.00
500.00
Sect or W i se Break-up - V al ue
17%
151
160
N o . o f D eals
% Stake
4.99%
9.00%
10.00%
N.A.
5.60%
26.00%
36%
4%
5%
120
80
2%
60
67
36%
61
Banking & Financial Services
31
40
35
IT & ITES
Media, Ent ert ainment & Publishing
0
Banking &
Financial
Services
private and confidential
IT & ITES
Media,
Entertainment &
Publishing
Pharma,
Healthcare &
Biotech
Real Estate &
Infrastructure
Management
Pharma, Healt hcare & Biot ech
Others
Real Est at e & Inf rast ruct ure Management
Ot hers
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – pharmaceutical sector

the Indian pharmaceutical sector is currently the largest amongst the developing nations. Given its
current momentum of growth the Indian pharmaceuticals market is expected to expand to US$ 25
billion by 2010. It is rightly considered to be one of the flagship sectors of the Indian economy, as
Indian pharmaceutical companies continue to move to the center stage of the global
pharmaceutical market. There is a worldwide structural trend evolving in pharmaceuticals and
Indian companies play a key role in this framework, driven by their superior biotech and drug
synthesis skills, high quality and vertically integrated manufacturing assets, differentiated
business models and significant cost advantages.

Even at home, Indian pharmaceutical companies reign supreme compared to their multinational
counterparts. Profit margins of Indian companies are consistently on the rise and the recent trend
of mergers and acquisitions by Indian pharmaceuticals are likely to provide an upside to the
growth numbers. Total Indian Pharmaceutical Market is valued at US$ 8790 million with a growth
rate of exceeding 8%

Indian pharmaceutical companies have adapted
to the changing industry dynamics and
increasing regulatory and competitive pressures
and have evolved distinctive business models to
take advantage of their core competencies in
R&D, Manufacturing, Marketing and the niche
opportunities offered by the changing global
pharmaceutical
environment.
These
differentiated business models provide the
pharmaceutical
companies
the
necessary
competitive edge for consolidation and growth
private and confidential
5
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the india proposition – pharmaceutical sector
private and confidential
6
mosaiccapital
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the india proposition – pharmaceutical sector
private and confidential
7
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the india proposition – the global indian: cross border acquisitions
Acquirer
Tat a St eel
Vodaf one
Hindalco Indust ries
Suzlon Energy
Essar St eel Holdings
Unit ed Spirit s
Tat a Pow er
Billion Dollar Plus M &A Deals
Target
Sector
Corus
St eel
Hut chison Essar
Telecom
Novelis Inc
Aluminium
REpow er
Pow er & Energy
Algoma St eel Inc
St eel
Whyt e & M ackay
Brew eries & Dist illeries
PT Kalt im Prima Coal
Pow er & Energy
Value - USD M n
12,201.60
10,830.00
6,000.00
1,700.93
1,580.00
1,112.99
1,100.00
Deal Type
Acquisit ion
M ajorit y
Acquisit ion
Cont rolling St akr
Acquisit ion
Acquisit ion
Signif icant St ake
Any Involvement Asia M &A By Target Nation - CY 2006
Target Nation
Deal Value (US$ M il)
China
Hong Kong
India
M alaysia
Sout h Korea
Taiw an
Singapore
Philippines
Thailand
Indonesia
Industry Total
38,406.40
26,930.20
26,676.80
25,956.60
24,493.80
21,396.30
15,713.80
7,754.50
7,555.10
5,117.70
201,531.40
Number of
Deals
1,913.00
765.00
1,141.00
873.00
255.00
175.00
465.00
128.00
268.00
117.00
6,216.00
* list excludes the take-over of Arcelor by Mittal Steel (essentially Indian promoter and management team)
private and confidential
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the india proposition – the global indian: cross border acquisitions
Amtek Auto
Zelter GmbH, Germany, GWK Group, UK, Lloyds (Brierly Hill), UK,
Midwest Mfg. Co., USA, Tiplex-Kelton Group, JL French’s (Witham) Limited
Asian Paints
Delmege Forsyth (Sri Lanka), Pacific Paints (Australia), Berger International,
SCIB Chemical (Egypt), Taubmans Paints (Fiji)
Bharat Forge
CDP Aluminiumtechnik, Germany, Federal Forge, USA, Imatra Forging
Group,
Sweden and Scotland
Havell’s India
Ltd
SLI Sylvania lighting business, acquisition price USD 300 million
Indian Hotels
Hotels in Zambia and Australia
Marico
Sundari LLC, USA, consumer division of Enaleni Pharmaceuticals
MindTree
Consulting
TES-PV Electronic Solutions
Motherson Sumi
Reiner Präzision GmbH and G+S Kunststofftechnik GmbH in Germany,
Empire Rubber
Reliance
Communications
Yipes Holding Inc, acquisition price USD 300 million
Reliance
Industries
Gulf Africa Petroleum Corporation (GAPCO)
Reliance Life
Science
GeneMedix Plc, acquisition price USD 28.80 million for a 74% stake
Sterlite
Monte Cello Corporation, Netherlands, the holding company of copper mines
in Australia
Sundaram
Fastners
Dana Spicer, UK, Peiner Umformtechnik GmbH, Germany, PUT
Grundstucks GmbH
Tata Tea
Tetley, Good Earth, JEM_A, Glaceau
VSNL
Teleglobe International Holdings, Tyco Global Network
Wipro
Spectramind, GE’s healthcare software arm, global Energy practice of
American Management Systems, Nervewire, US, Ericsson's Indian R&D arm,
OkI Techno Centre Singapore
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions
why indian companies acquire ?
 build critical mass in terms of marketing, manufacturing
and research infrastructure
 establish front end presence
 tap other geographies / therapeutic segments /
customers
 enhance product, technology and intellectual property
portfolio
 catapulting market share
 barrier to entry
Indian pharmaceutical companies have now moved up a
step in the value chain and are looking at inorganic route
to growth through acquisitions. Many top and mid tier
Indian companies have gone on a global "shopping
spree" to build up critical mass international markets
the India advantage
 Indian pharmaceutical companies, given their reverse
engineering skills have evolved superior chemistry, regulatory
and manufacturing skills at low cost
 Availability of skilled labor at low cost (labor costs in India
are around 1/7th the levels in developed countries)
 Capital efficiency: Indian companies are able to reduce the
upfront capital cost of setting up a project by 25-50% due to
access to locally fabricated equipment and high quality local
technology/engineering skills. This benefit can be passed on to
customers
 Regulatory expertise: India has around 75 plants approved
by the US-FDA (the highest in any country outside USA)
The total value of merger & acquisitions transactions done by the Indian pharma
companies exceeds US$4 billion in value terms (last 24-30 months)
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions

industry dynamics and deal preferences – innovation vs. generics / commodity products –
the company group has products ranging across the spectrum (and the geographical reach);
thus would be a suitable investment target for a number of Indian pharma product
companies
private and confidential
11
mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions
Indian Cross Border Pharma Deals - CY 2007 (USD M n)
Target
Acquirer Deal Size
GeneM edix Plc
Reliance Lif e Science
28.80
M edicament a
Glenmark Pharmaceut icals
N.A.
Hollist er-St ier Laborat ories
Jubliant Organosys
122.50
Nippon Universal
Cadila Healt hcare
N.A.
Taro Pharma
Sun Pharmaceut icals
454.00
BM S
Ranbaxy Laborat ories
26.00
Diaspa SpA f erment at ion asset s
St rides Arcolabs
N.A.
Negma Lerads
Wockhardt
253.49
CBK-M PR Pharma
Lambda Therapeut ics
6.50
Biosciences Co Lt d
Dabur Pharma Lt d
N.A.
Undisclosed
Avest hagen
11.00
Nikkho Pharma
Cadila Healt hcare
25.00
GSR Syst ems
Accent ia Technologies
N.A.
Neut ra Healt h Plc
Elder Pharmaceut icals
10.93
Solvay Pharmaceut icals
Dishman Pharmaceut icals
N.A.
New Biological Ent it ies
Glenmark Pharmaceut icals
N.A.
SaveM art Pharmacy
Nat co Pharma
N.A.
Biomeda Group
Elder Pharmaceut icals
6.51
Formulat ion manuf act urer
Ipca Laborat ories
N.A.
M ort on Grove Pharmaceut icals
Wockhardt
N.A.
Kyow a Pharmaceut icals
Lupin Lt d
N.A.
Siegf ried Biologics
Avest a Biot herapeut ics
N.A.
Lukaps
ACG Worldw ide
N.A.
Gene Logic
Ocimum Biosolut ions
10.00
CM S-Kat ra
Kerala Ayurveda Lt d
N.A.
ECRON GmbH
M anipal AcuNova
N.A.
Nat rol
Plet hico Pharmaceut icals
80.80
Enaleni Pharmaceut icals
M arico Lt d
12.09
Hale Group
M arksans Pharma
N.A.
private and confidential
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Stake
74%
90%
100%
100%
100%
100%
100%
100%
76%
100%
100%
100%
100%
20%
100%
100%
100%
51%
100%
100%
80%
100%
100%
100%
51%
100%
100%
100%
100%
mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions

sample mergers & acquisitions inked by the Indian industry participants in 2005-06 in the pharma sector
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions

mergers & acquisitions inked by the Indian industry participants in 2005 in the pharma / biotech sectors
private and confidential
16
mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border pharma acquisitions

mergers & acquisitions inked by the Indian industry participants in 2005 in the pharma / biotech sectors
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: management philosophy

apart from the “generic products space”, the innovation space acquisitions would be an optimal tool
for Indian companies while building on their capabilities given the industry’s relative inexperience
with basic & applied research and product development. The advantages of acquiring a company
strong in research & development for innovation are many and obvious; a few broad ones include:
•
•
•
•

fewer challenges in turning around the acquisition considering the scale of operations of an R&D driven service
provider in comparison to a marketing and sales driven “generic products” company
fewer challenges in merging acquired research projects or capabilities in the absence of multiple well established
in-house research programs and capabilities
gaining an existing alliance portfolio of the acquired company thereby creating an immediate entry into the
innovation and its related space to be consolidated further
ability to synergize existing and acquired capabilities to seek new vistas of opportunity
the bottom line – since M&A provides a potential advantage to succeed for Indian companies on their
way to harness external capabilities in the absence of existing competencies and strengths of in-house
research projects and many untapped geographies – the key elements of the incumbent management
team essentially be integrated into a bigger roles, in a larger organisation with larger budgets and
targets
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: a case study

Wockhardt is a global, pharmaceutical and biotechnology company that has grown by leveraging

has a market capitalization of US$ 1.3 billion and an annual turnover of US$ 285 million (Rs. 12.39
billion). Wockhardt has a strong and growing presence in the world’s leading markets, with half of its
revenue coming from Europe and the United States.

key strengths
two powerful trends in the world healthcare market - globalization and biotechnology.
•
•
•
•

manufacturing capabilities: manufacturing facilities in India and UK have the approval of major regulatory
bodies, including US FDA and UK's MHRA, with capabilities for both Finished Dosage Formulations and APIs
biotechnology: Wockhardt has developed comprehensive ‘concept-to-market’ strengths in all facets of
recombinant biotechnology. These include gene-cloning, development of production strains, expertise in all
three major expression systems, purification, downstream processing and testing
set up the Wockhardt Biotech Park, amongst India’s largest biopharmaceuticals complex, with six dedicated
plants built to international standards with capacities to meet 10-15% of global demand for important
biopharmaceuticals
sound regulatory infrastructure has been set up for its biogenerics pipeline with registrations in developing
markets. The company has also set up front-end offices in the identified markets - either owned organizations,
strategic joint ventures or distribution arrangements
acquisition management



private and confidential
the company has a strong track record in acquisition management, with three successful acquisitions in the
European market and two in the domestic space.
the acquisitions in Europe and the subsequent integration of their operations have strengthened Wockhardt’s
position in the high-potential markets of UK and Germany, and have expanded the global reach of the
organization
the growth drivers for Wockhardt’s European business include exports, new product launches, penetration in
the European Union through mutual recognition, and strategic acquisitions
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mergers & acquisitions | private equity
the india proposition – the global indian: a case study
…continued

Wockhardt UK Limited: (Erstwhile CP pharmaceuticals) is amongst the 10 largest generics companies
in UK and the second largest hospital generics supplier. The Company has a comprehensive, FDAapproved manufacturing facility. Wockhardt UK has built up a critical mass in the segments of Retail
Generics, Hospital Generics, Private Label GSL / OTC Pharmaceuticals, etc

Esparma GmbH: The acquisition of Esparma GmbH in 2004, has given Wockhardt a strategic entry
point into Germany, the largest generics market in Europe. Esparma has a strong presence in the highpotential segments of urology, neurology and diabetology, assisted by a dedicated sales & marketing
infrastructure

key to Wockhardt’s successful acquisition management is the management’s ability to turnaround the
acquired company, in active participation with the incumbent management team, in record time and
thus create value out of the acquisition.

the company believes in value buys that would have a tactical fit with its core competencies and key
strategic objectives

the company has plans for further acquisitions in the developed markets of Europe and US to further
consolidate and strengthen their positions in these geographies
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – healthcare sector

the Indian healthcare sector has been growing at a frenetic pace and is undergoing phenomenal
expansion. Private hospitals and continued investment in the public health programmes are driving
the boom

healthcare industry includes different segments: healthcare delivery, medical equipment and
diagnostics, medical outsourcing and medical education

revenues from the healthcare sector account for 5.2 per cent of the GDP and it employs over 4
million people (source: CII-Mckinsey study on 'Health in India' ). By 2012, revenues can reach 6.5
to 7.2 per cent of GDP and direct and indirect employment can double

India will spend US$ 45.76 billion on healthcare in the next five years as the country, on an
economic upsurge, is witnessing changes in its demographic profile accompanied with lifestyle
diseases and increasing medical expenses (source: CII-Mckinsey study on 'Health in India' )
•
•
•
private healthcare will continue to be the largest component in 2012 and is likely to double to US$ 35.7 billion
could rise by an additional US$ 8.9 billion if health insurance cover is extended to the rich and middle class
coupled with the expected increase in the pharmaceutical sector, the total healthcare market in the country
could increase to US$ 53-73 billion (6.2-8.5 per cent of GDP) in the next five years
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – healthcare sector: key drivers & trends

changing demographic and socio-economic profile
•
•
proportion of the country's population in the 15-54 and the 55 and above
age groups is increasing owing to improvement in life expectancy levels
large geriatric population (55 and above), estimated to be the largest in
the world, will form a major consumer segment in the near future
Age wise population distribution
1991 (% )
2001 (% )
2010 (% )
0-14
36
35
29
15-54
55
55
59
9
10
12
55 & above

rising demand for quality health care
•
•
•

increasing penetration of private health insurance
•
•
•
•
growth in affluence of over 300 million strong middle-income consumers
is creating demand for higher standards of healthcare
between 1993-94 and 2001-02, aggregate household expenditure on
health services increased at an annual compounded rate of 9.3%
multi-specialty private hospitals are preferred even if the consumers bear
this expense personally
with growing awareness levels and increasing affordability arising out of
the growth of private health insurance, the demand for quality
healthcare services in India is growing faster than ever before
estimates project an insured base of 160 million by 2010
institutional customers have emerged as an important customer segment
for private health insurers
changing lifestyle patterns
•
•
incidence of lifestyle diseases such as diabetes and cardio-vascular
diseases is on the rise
trend is driving the demand for multi-specialty and super-specialty
healthcare services, covering key therapeutic areas like cardiology,
nephrology, oncology, orthopedics, geriatrics, maternity and critical care
private and confidential
22
mosaiccapital
mergers & acquisitions | private equity
the india proposition – healthcare sector: key drivers & trends

healthcare sector posted a 42% rise in earnings in the year to March 2007 (source: Reuters)





at the current pace of growth, medical tourism, currently pegged at US$ 350 million, has the potential to
grow into a US$ 2 billion industry by 2012
private healthcare will form a large chunk of this spending, rising from US$ 14.8 billion to US$ 33.6 billion in
2012. This figure could rise by an additional US$ 8.4 billion, if health insurance cover is available to the rich
and the middle class
the voluntary health insurance market, which is estimated at US$ 86.3 million currently, is growing fast.
Industry estimates put the figure at US$ 2.8 billion by 2005
with the expected increase in the pharmaceutical market, the total healthcare market could rise from US$ 22.2
billion, currently (5.2 per cent of GDP) to US$ 50 billion - 69 billion) (6.2-8.5 per cent of GDP) by 2012
the sector is providing a host of opportunities including






medical tourism
preventive health care
health care BPO
tele-medicine
laboratory and diagnostic services
medical devices
private and confidential
23
mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: cross border healthcare acquisitions

Indian healthcare is all set to go global with a host of domestic hospital chains busy scripting
overseas expansion plans
•
•
•

Apollo Hospitals has drawn up plans to set up or manage hospital projects in Mauritius and Fiji. Besides, it is
bidding for a diagnostic facility in the UK and plans to try for a hospital project in that country later. These
would be in addition to the group's existing overseas facilities in Colombo, Bangladesh, Nigeria and the
Middle East
Max Healthcare, another leading hospital chain, is trying to enter the US, UK and far-east markets. This is
besides the expansion of its operations in neighbourhood countries like Bangladesh and Afghanistan
Wockhardt is also eyeing markets in Europe, particularly the UK, as part of its growth strategy. The company
is already building its brand presence through tie-ups with leading healthcare insurance providers in the US,
UK and Singapore
the government is also providing able support to help promote smaller health care providers
•
•
•
•
till now, only a few big private healthcare providers such as Apollo, Fortis, Wockhardt and Max were creating
their individual brand awareness in overseas markets through tie-ups with insurance companies and patient
facilitation centres
the government is launching a comprehensive programme to promote medical tourism
putting in place an accreditation system for domestic hospitals and healthcare providers, drawing up a price
band for superspeciality services offered by Indian hospitals, adoption of country-specific marketing
strategies, opening of overseas facilitation centres and tie-ups with overseas insurance companies
the National Accreditation Board for Hospitals and Healthcare Providers (NABH) set up by the Ministry of
Health under the aegis of the Quality Council of India is currently finalising the guidelines for accreditation of
hospitals and other healthcare service providers
private and confidential
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mosaiccapital
mergers & acquisitions | private equity
the india proposition – medical devices sector


the biomedical devices market in India is unofficially estimated at around US$ 2 billion and of
which about 80-85% is met through imports
driving forces that are creating the demand for medical equipment include:
•
•
•

establishment of a number of super-specialty hospitals and specific diagnostic centres
urban private sector hospitals upgrading their equipment and instruments to remain competitive
favourable government policies such as a reduction in import duties on medical equipment
off-shoring medical devices

as an example: the US market for medical devices is expected to reach $89 billion in 2007, representing a
promising opportunity for manufacturers and service providers (source: Medical Device & Diagnostic Industry –
"Opening the doors to India: Off-shoring Medical Devices)




with this opportunity comes the added pressure for medical device companies to stay ahead of the
competition
to compete in this attractive market, many medical device makers are successfully partnering with offshore
outsourcing firms and collaborating on device development and manufacturing
they are off-shoring processes such as application development, systems engineering, hardware design,
software solutions, and manufacturing
benefits of outsourcing to India





Impressive pool of well educated, highly qualified, english speaking professionals
With more than 380 universities, 11,200 colleges, and 1500 research institutions, India has the second-largest
pool of scientists and engineers in the world; more than 2.5 million graduates are added to the workforce
every year, including 300,000 engineers and 150,000 technology professionals
among Brazil, Russia, India, and China, India is expected to stay the youngest; its working-age population is
estimated to represent 70% of the total population by 2030 – the largest in the world
economic & political stability
partners that specialize in finished-device manufacturing, can help a company improve quality while
shortening the product development cycle and reducing time-to-market and reducing the lifecycle costs by as
much as 40-50%
private and confidential
25
mosaiccapital
mergers & acquisitions | private equity
the india proposition – the global indian: a case study

Opto Ciruits (BSE Code: 532391; NSE Symbol:
OPTOCIRCUI) is a leading manufacturer of non-invasive
healthcare equipments headquartered in Bangalore, India. The
product profile includes digital thermometers, sensors, probes,
pulse oxymeters, patient monitoring systems and innovative
products in the pipeline. OCIL has two lines of businesses





Advanced Micronic Devices, a listed company engaged in
manufacturing and marketing of health care equipments in India :
2001
Digital Clinical Thermometer division from Unilever in India :
2002
Acquisition of the patient monitoring division of Palco Labs, USA :
2003
continuing its goal of aggressive growth and diversification in
the healthcare segment recently (Dec 2005) completed its
acquisition of EuroCOR GmbH


transaction valued at €11 million
EuroCOR manufactures Cardiac and Peripheral Stents of various
types, including Drug Eluting Coronary Stents used in Critical
Cardiac Care. It is one of the largest manufacturers of Stents. By
acquiring EuroCOR, OCIL gets to access the existing as well as
potential market for Stents globally
private and confidential
 strong foothold in the global arena for Stents
(total global market for Stents expected to be
US$10billion by 2008)
 strong R&D base of EuroCOR will lead us in
the direction of greater market share and also
better margin business
 help improve shareholder value
grown in-organically over the past few years:


(a) OEMs – direct supplier to GE and other large MNCs
(b) MediAid (100% US-based subsidiary) – markets OCIL’s brands
Why OCIL acquired EuroCor ..
26
What EuroCor had to say ..
 though present in more than 26 countries
worldwide including in India, this acquisition by
Opto Circuits gives
 a great opportunity to access the vast
potential offered by India
 excited by the prospect of tapping latent
potential in developing countries
mosaiccapital
mergers & acquisitions | private equity
key contact information

Sanjay Krishnan
London
[email protected]
hand phone: +44 (0) 7738321449
facsimile: +44 (0) 208 711 3943

Vinay Shah & Ashutosh Ghanekar
Mumbai
[email protected]
hand phone: +91 (0) 9967642785
facsimile: +44 (0) 20 66325631

Vikram Bihani
Bangalore
[email protected]
hand phone: +44 (0) 9886409387
facsimile: +44 (0) 80 25091532
private and confidential
27
mosaiccapital
mergers & acquisitions | private equity