Opto Circuits buys NS Remedies for $1.50 million

Healthcare equipment maker Opto Circuits (India) Ltd said on Monday it has acquired Kolkata-based NS Remedies Ltd for $1.50 million in an all-cash deal.                                           

The acquisition is expected to cut costs by 23-25% currently incurred by Otpo Circuits on outsourced manufacturing, a top official said.                                           

"We always wanted to have our own manufacturing base. Earlier, we used to outsource the manufacturing to Germany," chief financial officer B Bhaskar told Reuters over the telephone.  

Kolkata-based NS Remedies has an advanced facility for stent manufacturing and research and development. The company has capabilities to produce stainless steel and cobalt chromium stents, Opto Circuits said in a statement.                                           

"The advantage is not much on the top-line," Bhaskar added. "....obviously, on the value chain, we will make money."        

"The acquisition, besides enhancing our manufacturing capacity, will significantly reduce the cost of manufacturing bare metal stents and also reduce dependency on external agencies," chairman and managing director Vinod Ramnani said in the statement.                                           

At 11.38 am, shares of Opto Circuits were trading at Rs219, up 0.99% in a Mumbai market that was 0.75% up.