India opens medical devices production park in Chennai

A medical technology park dedicated to the production of medical and pharmaceutical products and equipment has been launched at Irungattukottai near Chennai, the capital city of the southern Indian state of Tamil Nadu.

The new facility, named Trivitron Medical Technologies Park, is a joint venture of the leading medical technology company Trivitron Healthcare Private Ltd and Aloka Ltd of Japan, a pioneer in the diagnostic ultrasound technology.

The 25 acres-Trivitron Medical Technologies Park is designed to house 10 international medical technology manufacturers.

Trivitron Medical Technologies Park is an effort to bring high-end medical technology to medical professionals across India at affordable costs, reports said.

Indigenous production of world-class medical devices will also bring down the overall healthcare costs to considerably low levels, it is expected.

Medical products and equipment ranging from ultrasound systems, colour dopplers, X–ray machines, C-arms , in-vitro diagnostic reagents and instruments, cardiology diagnostic instruments, critical care instruments, modular operating theatres, operating theatre lights and tables and implantable medical devices will be manufactured at Trivitron Medical Technologies Park.

Trivitron Medical Technologies Park’s neraly 20,000 sq ft facility includes internal corridors, raw material storage area, material IN & UT areas have an epoxy coated flooring etc.

Trivitron Healthcare Pvt Ltd has already signed joint ventures with leading international medical devices manufacturers including Brandon Medical, UK, ET, Cardio line, Italy, Johnson Medical, Sweden and Bio-systems, Spain for setting up more facilities at the park.

Medical devices and supplies market in India is expected touch USD 1.7 billion in 2010, growing at the rate of 23% annually in the coming years from the current Rs. 5750 crores, according to a recent sector report by National Institute of Pharmaceutical Education and Research by (NIPER), Ahmedabad.

The Indian medical equipment market is dominated by the medical instruments and appliances used in specialties such as ophthalmic, dental and other physiological classes. This segment accounts for 26% of the total market followed by orthopedic/ prosthetic goods segment accounting for 19% of the total market.

Among the segments in the medical devices market diagnostic equipment leads with Rs. 2000 crores, surgical equipment supplies worth Rs 1300 crores comes second and imaging and electronic treatment devices follow with Rs 1300 crores and Rs. 1000 crores respectively.

Medical supplies such as bandages and disposables such as syringes, needles and catheters together constituted 21% of the total market. The other equipment which are in demand are high end speciality electro medical equipments that accounted for 11% of the total market. X-ray apparatus accounted for 10% of the total market.

Another high growth segment in the medical devices industry is diagnostic kits. Diagnostic kits has a growth rate of 30% and a market size of USD 133 million in 2005. They include the reagents and the medical kits. With over fifty companies operating in diagnostic kits, the market has seen several interesting trends.

Roche Diagnostics is the leading player followed by Transasia, Bayer and others such as Span Diagnostics, Piramal Healthcare, Orchid, Tulip Diagnostics, Zephyr Biomedical, Biorad, Liliac etc.

Imports constitute over 50% of the market. Most imported products have high gross margins. Currently, the high value imported products include cancer diagnostic, medical imaging, ultrasonic scanning, plastic surgery equipment and polymerase chain reaction technologies.

The medical devices market for exports from India is estimated around USD 509 million with a CAGR of 22.15%. The exports mainly consist of dental instruments, surgical items and other laboratory equipment.

Prominent MNC’s operating in the Indian market include B Braun, Becton, Dickinson and company, Bayer, Johnson and Johnson, Phillips ,Roche, Siemens and GE. Some of the domestic players hat have consolidated their market position include, BPL Healthcare, Godrej Healthcare, Nicholas Piramal India Ltd., Opto Circuits India Ltd. and Advanced Micronic Devices Ltd.

Despite strong growth rates, the market remains disproportionately small, ranking among the top 20 in the world, but with a very low per capita spending.

India is also in the process of finalising the guidelines to the manufacture, import and sale of medical devices under Schedule M III.

The Drugs Technical Advisory Board (DTAB) which provides technical guidance to the Central Drugs Standard Control Organization – the apex body to regulate drugs and cosmetics – under the ministry of Health and Family Welfare has submitted the final draft of the guidelines on medical devices to the drug controller.

The medical devices and equipment are currently notified as drugs are regulated under the Drugs & Cosmetics Act and Rules. However, the guidelines will apply to inspections and other requirements Schedule M III.

The new guidelines Schedule M III which comes as extension to the Schedule M under India’s Drug and Cosmetics Act that stipulates norms for the manufacturing and sales of pharmaceutical products in the country.