Kotak Investment Advisors Limited (KIAL), the alternative assets arm of Kotak Mahindra Group, on Tuesday said it has invested up to Rs 400 crore ($47.9 million) in medical device manufacturer Biorad Medisys, through its Strategic Situations India Fund II.
Biorad Medisys manufactures and sells orthopaedic implants for knees and hips and surgical and consumables focused on urology, gastroenterology, and neurovascular intervention through its manufacturing facilities in Pune, Maharashtra, and Bengaluru, Karnataka.
The firm would utilise the funds to set up a new manufacturing plant, repay existing debt and fund increasing working capital requirements.
“The Indian medical devices industry is at an inflextion point, with increasing demand for quality healthcare along with the government’s support for domestic manufacturers through the ‘Make in India’ campaign”, said Kotak Strategic Situations India Fund CEO Eshwar Karra.
Biorad Medisys’s funding comes as India witnesses an unprecedented demand for healthcare amid an ageing population and rising disposable incomes.
Among other medical device makers in India, Bengaluru-based Forus Health has initiated talks with a host of private equity (PE) firms to raise capital as it looks to expand operations and provide an exit route to some of its investors. Separately, Tynor Orthotics is said to be in talks with Singapore state investor Temasek Holdings to raise capital as it looks to ramp up exports.
Most recently, global investment firm KKR signed a deal to acquire Indian medical devices firm Healthium Medtech from Apax Partners.
In June, Kotak’s Strategic Situations Fund II marked its first close at $1.25 billion. The Special Situation Fund’s investment objective is to generate target returns by primarily investing in distressed/stressed or special situation opportunities in India.
Through the fund, the firm has invested in companies such as OmniActive Health Technologies, Jindal Stainless Steel, HKR Roadways, and Prius Commercial Projects.