Medsource Ozone Taps EY for Strategic Funding Exploration
Medsource Ozone Biomedicals has taken a significant step toward expansion. The Faridabad-based company has hired Ernst & Young, a leading audit and advisory firm, to explore capital-raising options. This development comes as the company aims to fuel its growth in the competitive medical technology sector.
Funding Targets and Strategic Moves
According to sources familiar with the matter, Medsource Ozone may look to raise approximately ₹300 to 400 crore. The promoters are considering liquidating some of their stake to accommodate new investors. This potential funding round would represent the company's second external capital raise in more than four years.
The company previously secured about ₹35 crore from private equity firm Xponentia Capital Partners in 2021. Those funds supported product launches and distribution expansion in India and overseas. Now, Medsource Ozone is setting its sights on reaching the ₹500 crore revenue mark within the next three to four years.
"This initiative forms part of the company's broader strategy to operate as a professionally managed institution," one source explained. The exact structure of the deal remains under discussion, but the move signals Medsource Ozone's commitment to scaling its operations.
India's Growing Med-Tech Landscape
Medsource Ozone's expansion plans align with the rapid growth of India's medical technology market. Ernst & Young estimates this market will more than double from $12 billion in fiscal year 2024 to $50 billion by 2030. India's share of the global market could surge from 1.65% to between 10% and 12% within twenty-five years.
Several factors drive this projected growth:
- Rising income levels across the country
- Expanding healthcare coverage and insurance penetration
- Increasing medical tourism creating new demand
- Infrastructure development in tier 2 and tier 3 cities
- Innovative pricing models making devices more accessible
The Indian medical device industry comprises five key segments. Electronic equipment holds the largest share at 56%, followed by disposables and consumables at 26.5%. In-vitro diagnostics, Medsource Ozone's specialty, accounts for 8.1% of the market. Implants and surgical instruments make up the remaining segments.
Company Background and Competitive Position
Founded in 2003, Medsource Ozone Biomedicals has established itself as a major player in the in-vitro diagnostics space. The company manufactures instruments and reagents for medical testing, supplying laboratories across India and more than thirty-five countries worldwide.
Key products in their portfolio include:
- Advanced testing instruments for clinical laboratories
- Rapid test kits for various medical conditions
- Specialized reagents used in diagnostic procedures
During the COVID-19 pandemic, Medsource Ozone served as one of the few suppliers of RT-PCR test kits to Indian laboratories. The company reported revenue of ₹173 crore in fiscal year 2024 and recently added a new manufacturing unit in Faridabad to enhance its research, development, and production capabilities.
In the competitive diagnostics market, Medsource Ozone faces competition from several domestic and international players. Key competitors include Tulip Diagnostics, Agappe Diagnostics, and Avecon Healthcare. Other significant players in India's diagnostic kits sector include Transasia Bio-Medicals, Trivitron Healthcare, and Accurex Biomedical. Multinational corporations like Abbott Diagnostics, Siemens Healthineers India, and Meril Diagnostics also maintain a strong presence in the Indian market.
Both Medsource Ozone and Ernst & Young have declined to comment on the ongoing discussions regarding funding options. The details remain confidential as the company explores strategic opportunities for growth and expansion in India's promising medical technology sector.
