Poly Medicure, India's largest listed medical equipment exporter, is adapting to various global challenges, including competition from Chinese companies and rising input costs. The company anticipates a significant increase in its growth rate, projecting it to more than double in FY27 as it pivots towards high-tech equipment and leverages recent acquisitions.
In FY26, Poly Medicure reported a 12.3% year-on-year revenue growth, reaching ₹1,875.3 crore. This growth was largely attributed to the acquisition of Italian orthopaedic device maker Citieff and Dutch medical devices company PendraCare Group, which specializes in cardiology catheters.
Strategic Shift to High-Tech
The acquisitions mark a strategic shift for Poly Medicure as it seeks to enhance its position in the medical equipment sector. Managing Director Himanshu Baid emphasized the company's move up the value chain, transitioning from low-cost consumables to more sophisticated medical technologies.
“We are moving up the value curve,” Baid stated, noting that the company is now focusing on higher-value sectors like cardiology, orthopaedics, oncology, and renal care. This shift is crucial as these sectors represent a significant portion of hospital patient populations.
Historically, Poly Medicure's products were priced around ₹19-20 each, but the company is now offering items that range from ₹10,000 to ₹50,000 or more. This transition allows Poly Medicure to compete effectively against multinational products, leveraging its cost-effectiveness and agility.
Addressing Competitive Pressures
The shift to high-tech equipment is also a response to aggressive pricing strategies from Chinese competitors, particularly in Europe, which accounts for half of Poly Medicure's revenues. The company is advocating for policy support in India while simultaneously innovating its product offerings in Europe.
“In low to medium technology, performance and quality become critical factors beyond just price,” Baid explained, highlighting the company's focus on maintaining high standards in its product lines.
Growth Prospects in the US and India
With the anticipated India-US trade deal potentially reducing tariffs to 18%, Poly Medicure aims to boost its exports to the US, which currently contribute a modest $6-7 million to overall sales. The company's goal is to increase this figure to $25 million by FY30.
In India, where sales account for 31% of total revenue, growth is being driven by expanding corporate healthcare chains and improved insurance coverage.
Challenges Ahead
Despite its optimistic outlook, Poly Medicure faces ongoing challenges, particularly due to the conflict in West Asia, which has led to a spike in polymer prices, a key raw material for medical consumables. Baid noted a 20% increase in input costs, prompting the company to implement a price increase of 3-5% for customers.
The depreciation of the rupee has also impacted export pricing, resulting in an overall price increase of 7-10%. However, the company anticipates that the war's effects will continue to influence its gross margins in the upcoming quarters.
