Published by : Economic Times
KOCHI: The Rs 100 crore Agappe Diagnostic Ltd., a leading in vitro diagnostics (IVD) reagent manufacturing company in India is planning to tap the tier 2 and 3 markets by expanding its production capacities.
"The annual growth rate of Rs 4000 croreIVD market in India is 15 to 20 per cent. But in rural areas it is higher at 25 per cent," company managing director Thomas Johnsaid. The chief customers of the products are clinical laboratories, hospitals and pathologists.
Besides its unit in Mumbai, it is setting up a new plant near Kochi having 1 lakh sq ft with all modern systems. It also has another equipment making unit in Kochi.
John said till some years back the IVD market was dominated by multinational companies. The entry of more Indian companies has brought down the prices of the products. "The same products manufactured by the multinational companies are offered by us for half or even lower prices with same quality," John pointed out.
Globally big companies are increasingly shifting their base to emerging countries to cut the cost of production "But we have definite advantage over them as we already have 250 distributors and around 20,000 customers," executive president Ganga Mohan said.
The company is expecting a turnover of Rs 125 crore in the current year. About 25 per cent of its income comes from the export of products to 50 countries. It has also tied up with several foreign companies like Toshiba Medical Systems, Mindray, Denka Seikenand Kwyova Medex for the supply of equipment and reagents.