In a significant move to bolster domestic manufacturing in the healthcare sector, investment firm Motilal Oswal Alternates has announced a substantial investment of $72 million into Sensa Core Medical Instrumentation. The deal, finalized on Monday, grants the private equity arm a significant minority stake in the Hyderabad-based manufacturer of medical diagnostic equipment.
Boosting Indigenous Manufacturing in Healthcare
The capital infusion is earmarked to accelerate Sensa Core's product development initiatives and fuel its global expansion plans. This strategic partnership is set to strengthen the company's position as a leading player in the in-vitro diagnostic (IVD) segment. Rohit Mantri, Managing Director and Co-head of Private Equity at Motilal Oswal Alternates, highlighted the critical need for such investments, pointing out that India imports over 75% of its medical devices, with annual imports surpassing $8.5 billion.
"We firmly believe in fostering indigenous development and manufacturing in India for local needs and for 'Make in India' exports to the world," Mantri stated. The exact percentage of the stake acquired remains undisclosed as per the agreement between the two entities.
Sensa Core: A Homegrown Diagnostic Leader
Founded in 2006 by Dr. Ravi Kumar Meruva, Sensa Core specializes in the IP-driven design, development, manufacturing, and distribution of specialized in-vitro diagnostic devices. The company has established a formidable presence, claiming market leadership in electrolyte analysers. Its products are used across more than 40,000 hospitals and diagnostic labs in India and are exported to over 78 countries.
Beyond electrolyte analysers, Sensa Core is also a prominent Indian player in glucometers and haemoglobinmeters and has recently entered the market for arterial blood gas analysers. Dr. Meruva emphasized the company's mission, stating, "With a strong focus on expanding access to healthcare, we believe affordability can be achieved through local manufacturing and large-scale production."
Expansion Plans and Strategic Vision
To support its growth ambitions, Sensa Core operates a dedicated manufacturing facility in Hyderabad's Export Promotion Industrial Park, Pashamylaram. Furthermore, the company is in the process of commissioning a new manufacturing unit in the Medical Device Park at Sultanpur. This new facility is intended to augment production capacity and build capabilities for new product lines.
Veda Corporate Advisors acted as the exclusive financial advisor to Sensa Core for this transaction. On the investor side, Motilal Oswal Alternates, which manages private equity and real estate funds with cumulative assets of about $3.1 billion, focuses its private equity investments on providing growth capital to mid-market companies. Its preferred sectors include consumer, financial services, life sciences, and niche manufacturing. Earlier this year, the firm launched its fifth private equity fund with a first close of $800 million.
This investment marks a strong vote of confidence in India's ability to develop and manufacture high-end medical technology locally, aligning with the national 'Make in India' initiative and aiming to reduce dependency on foreign imports in a critical sector.
