RFCL Ltd, an ICICI Ventures company in the life sciences and laboratory solutions space, has acquired the entire business of Godrej Medical Diagnostics for an undisclosed amount.
Godrej buy to give it presence in point-of-care segment
MUMBAI: RFCL Ltd, an ICICI Ventures company in the life sciences and laboratory solutions space, has acquired the entire business of Godrej Medical Diagnostics for an undisclosed amount.
As part of its inorganic growth strategy, the company is also in the final stages of talks for another acquisition, which is expected to be finalised by this weekend.
Sushil Mehta, managing director, RFCL said, “RFCL (formerly Ranbaxy Fine Chemicals) plans to double its business in the next three years. It would be looking at similar growth opportunities to expand its product portfolio.”
Godrej Medical Diagnostics, a distributor of diagnostic equipment and consumables, would now be a part of Diagnova, the diagnostics and biomedical sciences division of RFCL, along with its people, brands, assets, liabilities and all current principal alliance partnerships.
The total sales revenue of Godrej Medical diagnostic last year was Rs 8.5 crore and is expected to be around Rs 12 crore for the current year. With this acquisition, RFCL, which had a sales turnover of Rs 194 crore last year, expects to touch the Rs 300 crore figure on an annualised basis.
Diagnova contributes about 30% to RFCL’s turnover and has a 7-8% market share in the $350 million Indian medical diagnostic industry.
RFCL had acquired Wipro Biomed, the biomedical solutions of Wipro Ltd, in July last year to add to the business of Diagnova. With Godrej coming in now, RFCL aims to achieve a double digit market share in the diagnostic segment in 3 years.
RFCL has a good presence in the immunology and haematology segments. The Godrej acquisition was aimed at getting a product portfolio in the point-of-care segment.
“We would now build on the existing point-of-care business and would relook the business development plans with Godrej Medical Diagnostics’ three principal partners — QBC Diagnostics, USA; Asia Gen Corporation, Taiwan; and Uritest Medical Electronic Co Ltd, China,” said Mehta.
Besides, RFCL is looking at similar growth propositions for its other two verticals — Vetnex, the veterinary healthcare business, and Rankem, the scientific laboratory solutions one. “As all the three segments that we operate in seeing robust growth, even we plan to grow at double the rate, with our inorganic growth strategy being a significant contributor,” Mehta said.
s_archana23@dnaindia.net
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