India’s medical device manufacturing sector is attracting significant interest from private equity (PE) firms. This reflects the robust growth projected for the Indian medtech industry, which analysts anticipate will reach $50 billion by 2030, a substantial increase from its current $12 billion valuation in FY24. Consequently, global and homegrown PE firms are actively seeking investment opportunities within this promising market.
Notably, KKR, TPG, Kedaara Capital, and Multiples Alternate Asset Management are reportedly in early-stage discussions to acquire a majority stake in Sensa Core Medical Instrumentation, a prominent Indian medical device manufacturer. This potential deal could value the Hyderabad-based company at approximately $300 million (around ₹2,600 crore). These interested PE firms are expected to submit non-binding bids within the next month.
Why Private Equity Eyes Indian Medtech
Several factors make the Indian medtech sector highly attractive to private equity investors. First, the industry demonstrates significant growth potential. Experts predict India’s global market share in medical devices will climb to 10-12% from the current 1.6% over the next 25 years. Additionally, medical device companies often generate steady, predictable revenues once they establish a strong distribution network and build trust with doctors. Therefore, investors view this stability as a key benefit.
Furthermore, Indian medical device manufacturers are increasingly on par with global players in terms of quality. This enhances their appeal to international investors. The increasing prevalence of chronic diseases and an expanding healthcare infrastructure also drive demand within the market.
Sensa Core: A Key Player in Indian Diagnostics
Owned by the Meruva family, Sensa Core is one of the largest domestic producers of in-vitro diagnostic analysers and point-of-care devices. Its product portfolio includes essential instruments like blood gas analysers, electrolyte analysers, glucose meters, lactate meters, haemoglobin meters, and cholesterol meters. Founded in 2006 by Ravi K. Meruva, Sensa Core also provides operational support and maintenance services for other electrolyte analyser brands. In FY25, Sensa Core is estimated to have recorded a revenue of about ₹400 crore and ₹80-100 crore in EBITDA. Investment bank Veda Corporate Advisors is advising Sensa Core’s promoters on the potential transaction.
However, Nagaraju Meruva, Executive Director at Sensa Core Medical Instrumentation, stated that the information regarding the deal is baseless and that they do not respond to rumors. A KKR spokesperson also declined to comment.
Recent PE Activity in Indian Healthcare
India’s medtech space has experienced a surge in investor interest, and several significant deals have recently occurred. For example, last week, UAE sovereign wealth fund Abu Dhabi Investment Authority (ADIA) acquired a minority stake in Micro Life Sciences (Meril), a Warburg Pincus-backed firm, for $200 million. Global investor KKR, a firm actively investing in the healthcare sector, acquired Healthium Medtech (formerly Sutures India) from Apax Partners last year in a deal valued at ₹7,000 crore. Prior to Apax, TPG Growth held a 75% stake in Healthium.
Last year, PE contenders KKR, TPG Capital, and Apax also showed initial interest in acquiring Sahajanand Medical Technologies (SMT), India’s largest manufacturer of cardiac stents. Nevertheless, that deal did not materialize, and SMT is currently preparing for an IPO. Morgan Stanley PE Asia and Samara Capital are among SMT’s investors, collectively holding a 49% stake. Therefore, the sector continues to see dynamic investment activity.
Outlook for India’s Medical Devices Industry
India remains heavily import-reliant for medical devices, with $8.2 billion in imports and 80-85% of devices sourced internationally, according to a recent EY report. This presents a significant opportunity for domestic manufacturers and, consequently, for private equity investment. With strategic growth and innovation, India is well-positioned to strengthen its medtech industry and reduce import dependency. Consequently, the nation is making significant strides toward becoming a global leader in the sector.
The government’s allocation of 2.1% of GDP to healthcare by the end of 2025 further underscores its commitment to improving healthcare infrastructure and investing in medical technologies. This proactive stance creates a favorable environment for continued investment and growth in the Indian medtech sector.
References
- PE funds vie for a majority stake in medical devices maker Sensa Core – ETHealthworld
- ‘Indian medical devices industry set to grow $50 billion by 2030’ – The Hindu, 2024-06-13.
- ‘Indian medical device industry is projected to reach $50 billion by 2030’, ETHealthworld, 2024-06-14.
- India Medical Devices Market Outlook to 2030 – Nexdigm, 2024-04-25.
- India Medical Device Market 2024-2030 – Mobility Foresights, 2025-04-25.
- India gets largest PE investment in healthcare sector in Asia-Pacific region during 2024: Report, ETHealthworld, 2025-04-23.