Polymed Medical Devices – An Indian Giant

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Written By: Shuchi Nahar | Subscribe to Shuchi’s Blog | Linkedin Profile

About Polymed Medical Devices & Industry in India

The global medical devices market reached a value of nearly $456.9 billion in 2019, having increased at a compound annual growth rate (CAGR) of 4.4% since 2015.

The market is expected to decline from $456.9 billion in 2019 to $442.5 billion in 2020 at a rate of -3.2%.

The decline is mainly due to lockdowns imposed by the governments across the world that hindered the supply chain in the medical devices manufacturing industry.

However, there is an unprecedented increase in the manufacturing of the ventilators and it’s expected to rise in demand for syringes as covid vaccines are claimed to treat COVID-19 patients.

The market is then expected to recover and grow at a CAGR of 6.1% from 2021 and reach $603.5 billion in 2023.

Drivers for Growth of Medical Technology Sector in India

Medical Devices Industry in India
Medical Devices Industry in India

The Indian medical device industry continues its upward march of growth and is strongly supported by India’s robust legal framework.

There are certain challenges to do the business of medical devices in India, but they can be easily overcome with government support.

The MedTech industry is redesigning its business model in line with the changing landscape -India-specific projects and Mobile solutions to reach tier 2 and 3 cities.

Government and industry collaboration in different areas like Health Technology Assessment, Innovative digital healthcare business models will help the government’s aim of universal health coverage and further boost the MedTech industry in the country.

About the Polymed Medical Devices

The company (Poly Medicure) was conceived and established in 1995 by a group of engineers and technocrats dedicated to a vision of providing the highest quality of healthcare to mankind.


It is one of the leading manufacturers and exporter of medical devices with the dominant position in the disposable medical devices market. 

Polymed Medical Devices company produces a variety of products in the segment of Oncology, Infusion Therapy, Dialysis, Respiratory Care, Urology, Gastroenterology, Blood Management System, Blood Collection System, Surgery and Wound Drainage, Anesthesia, etc.

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Revenue Growth Trend Over the Years

Polymed Medical Devices - Revenue Growth Trend
Polymed Medical Devices – Revenue Growth Trend

Revenue growth registering a 12% compounded annual rate over the five periods through fiscal 2020 is expected to continue at a moderate pace.

The major product, IV cannula, contributed around 29% of total sales in fiscal 2020 (28% in fiscal 2019), across more than 100 countries.

The company also has over 200 registered patents across countries. Continuous capacity addition and product innovation and development will support revenue growth over the medium term.

Read: Natco Pharma – An Oncology Pioneer

Impact on Demand of Syringe

The estimated demand in India would be around 900 million pieces of different kinds of syringes for just one shot of the vaccine, considering 60-70% of the country gets vaccinated.

The number would amplify to 1.8 billion if the vaccine India chooses to needs two shots. Looking at such a spike in demand for syringes.

Polymed Medical Devices - US Syringes Market Size
Polymed Medical Devices – US Syringes Market Size

Management said that their company’s insulin syringe is frequently used during vaccinations and the company has offered this product to the Government for the Covid-19 vaccination drive.

He added that many other companies are making similar products and that the government should start the procurement process for syringes as early as possible.

He said that the Covid-19 vaccine will soon arrive in the market.

Management said that the government may soon give permission to 3 or 4 companies to start manufacturing Covid-19 vaccines in India.

He averred that Poly-Med will need a syringe, needle cutter, and cold chain products which will be required to transport the vaccine.

Management revealed that the company has decided to raise Rs 400Cr out of which Rs 150 to Rs 200 cr will be used by the company to take the benefit of the PLI Scheme.

Management said in the next 5 to 7 years medical device industry will completely become Atmanirbhar and there will no need to import any devices.

Revenue from Medical Devices

Polymed Medical Devices - Revenue from Medical Devices
Polymed Medical Devices – Revenue from Medical Devices

India Facilities

Polymed Medical Devices has a strong track record of manufacturing high-quality medical devices in 8 state-of-the-art manufacturing facilities across the world.

They have 5 manufacturing facilities in India (3 facilities in Faridabad and 1 each in Jaipur and Haridwar).

Polymed manufactures more than 125 products using state of the art technology in ultra-modern facilities & state of art technology covering over 400,000 square feet of manufacturing floor space with about 100,000 square feet of cleanrooms of class 100,000 to class 1,000 (ISO Class 7 & 8).

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An R&D center with modern facilities supports the development process.

Foreign Facilities of Polymed

In China, the company operates its manufacturing facility in LaiyangQingdao, China, through Poly Medicure (Laiyang) Co. Ltd, wholly-owned subsidiary.

This facility commenced commercial operations in fiscal 2010 and is spread over an area of 10,913 square meters.

The total manufacturing area includes a cleanroom area of 1,006.40 square meters.

In Egypt, the company holds a 23% equity interest in Ultra for Medical Products, Egypt operates a manufacturing facility in Assuit, Egypt for disposable medical devices.

It is spread over an area of 12,500 square meters.

In Italy, Company has a wholly-owned step-down subsidiary Plan1 Health s.r.l., an Italy-based manufacturing Company.

Read: Hikal Limited Business Analysis

The Private and Foreign Investments

International companies in this field are also using India as a manufacturing base by either setting up facilities of their own or by acquiring domestic manufacturers.

Medical Technology Parks have been proposed by the Government of India in addition to the existing parks to encourage domestic manufacturing of medical equipment.

FDI inflow will spur R&D and manufacturing innovations, in turn, increases the efficiency and effectiveness of medical electronic products.

Focus on R&D and innovation

R&D is primarily focused on developing new products within existing as well as new critical care product verticals and further improving existing processes and productivity.

Polymed Medical Devices company has developed the technology to create molds internally with a strong R&D team comprising of 50+ engineers and 30+ engineers in process engineering. 

Polymed Medical Devices - R&D Expenses
Polymed Medical Devices – R&D Expenses

The company operates a research and development center at Faridabad, Haryana, which is approved by the Department for Scientific & Industrial Research and by the Ministry of Science & Technology, Government of India. 

Due to the COVID-19 – Coronavirus pandemic, companies like Poly Medicure Ltd can have increased in demand ahead due to increased health issue cases.

Watch: Poly Medicure Q2 Earnings Result

Strong Operating Efficiencies

Strong operating efficiencies are driven by labor-cost advantage over global competitors and in-house tool design and research and development (R&D) facilities.

Operating margin is expected at 20-23% over the medium term, supported by comfortable capacity utilization and modernization of existing facilities.

The Company is Poised for Greater Growth in Coming Years

In fiscal 2021, the PolyMed Medical Devices group is expected to continue to grow because of its strong presence in the export market, it contributes to 2/3 of total revenue every year – to be supported by the introduction of products related to Covid-19 such as sterilized VTM Testing Kits, Personal Protection Kits and Face Protective Shield.

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The company’s strong market position in its current product categories is supported by the expectation of continued healthy growth of the new products, which should contribute less than 5% for the entire year.

Higher Medical Devices consumption expected in India due to the implementation of Aayushman Bharat.

This Universal Healthcare Insurance Scheme in India will be a big game-changer for the Medical Devices industry.

Preferential Purchases of domestically manufactured goods in India by the government. 

New Regulatory changes – Medical Devices Rules implemented from January 2018

Now all Medical Devices will get regulated under new rules which will bring in the standardization of products and improve patient safety & quality.

National Medical Device Promotion Council – Under the Ministry of Commerce & Industry, Department of Industry Policy & Promotion (DIPP) – The setting-up of the Council will boost domestic manufacturing as it will act as a facilitating promotional & developmental body for the Indian Medical Devices Industry.

Higher Private Insurance penetration driving the consumption of medical devices. Higher growth is expected in the Renal Care & Diagnostic industry.

Watch: Poly Medicure vs Shilpa Medicare

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Written By: Shuchi Nahar | Subscribe to Shuchi’s Blog | Linkedin Profile

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Shuchi Nahar

Shuchi Nahar

Shuchi is NISM Certified Equity Research Analyst, CFA - Level 1, a student of Law and Finance, and an aspiring CS.
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