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L&T
eyes global equipment
market
ENGINEERING and construction
conglomerate, Larsen & Toubro (L&T) has decided to tap the
global medical equipment market in a big way. This would be achieved
mainly through offering contract manufacturing to foreign countries
and a European partner has already been tied-up for this purpose.
Furthermore it would shortly seek the FDA approval to enter the US
equipment market. The company officials announced this at a press
conference held recently in the city. The move is in line with its
restructuring plan, Project Blue Chip, as recommended by Boston
Consulting Group (BCG).
L&T has been the only major Indian company
involved in the manufacturing of low-end equipment viz. ultrasound,
monitors and surgical diathermies, indigenously since 1988.
According to R N Mukhija, Sr VP Operations, in the Rs 1000 crore
Indian medical equipment market, this segment is worth Rs 250-300
crore and L&T enjoys around 30 per cent share in it (Rs 60
crore). And the company envisages pocketing around 50 per cent of
revenue from this business through export in the next five years.
L&T has been exporting its equipment to a few
countries in the Middle East and South Asia and Africa along with
France and UK. "Being Indigenously developed, it is easier for
us to export our equipment," Mukhija said. He further explained
that being a national player helped L&T understand the customers’
needs in a better way and work accordingly in its R&D division.
J N Vaidya, Jt general manager, "Medical
Equipment Division, said that L&T’s products have been
receiving overwhelming response at a number of international
exhibitions viz. Medica, Hospimedica, etc. in the recent past which
prompted them to consider seriously venturing into the global
market. "International players have shown interest in our
products and hence we would focus on manufacturing the products and
allow our foreign partner to label them," he added. When asked
about any plans to start manufacturing high-end equipment to compete
with the existing MNCs, Vaidya said that there was no immediate plan
to do son and the focus would be on three low end products where
L&t is the market leader or a close second.
Speaking about the importance of aesthetics part in medical
equipment, he said, "For this we have taken the help of
Industrial Design Centre (IDC) at IIT Mumbai for our new
products." The company has also signed and agreement with BARC
for commercialising an impressive technology developed by them in
cardiology, informed Vaidya.
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