TK Healthcare Ltd., a TTK Group company, is betting on Centre’s initiatives such as ‘Make In India’ and ‘Atmanirbhar Bharat Abhiyaan’ to improve the growth prospectus of its medical devices business, said a top official.
The market for medical devices continues to be dominated by imported medical devices/implants. Since TTK Healthcare manufactures products that are priced competitively, this segment provides an opportunity for growth, T.T. Jagannathan, chairman, TTK Healthcare told the shareholders.
Asserting that these medical devices had great export potential, he said the ‘Make in India’ initiative by the Centre would further enhance the growth prospect for this segment, while ‘Atmanirbhar Bharat Abhiyaan’ would provide further fillip to the indigenous manufacture of medical devices.
Dwelling on the performance of the heart valve division, he said it posted a decent growth, while ortho division recorded a moderate growth.
The focus for the year 2020-21 would be to grow the volumes of TTK Chitra heart valves and to gain further volumes through bi-leaflet valves. Hip replacement portfolio would be launched across the country in 2020-21, he said.
“The strategy for 2020-21 would be to continue expansion into new geographies, grow revenues from new products such as hip range and knee portfolio extensions and explore export opportunities,” he said.
TTK Healthcare is into four major segments such as pharma/animal welfare, consumer products, medical devices and food business. Last year, it recorded a 3% rise in revenue to ₹646 crore. Pharma accounted for ₹231 crore, consumer products ₹181 crore, protective devices ₹100 crore and medical devices ₹45 crore. About ₹30 crore was infused in medical devices segment.
Talking about the current status of the business units, he said pharmaceuticals, WGW, Good Home, though started on a low note, have picked up during the quarter and have almost come to the normal level of business. Similar was the case with foods division. Skore condom, which had a major setback in April, had been progressing well in the subsequent months.
Products like Eva suffered a serious setback due to closure of cosmetics stores and ower consumption. Businesses like heart valves and ortho are also running at around 25-30% levels as these involve ‘elective surgeries’ while most hospitals are treating COVID-19 patients. The performance of non-Skore OEM business is more or less on track.
Despite a drastic reduction of around 35% in Q1 sales against the comparable quarter, TTK Healthcare delivered a cash profit of ₹60 lakh through various initiatives, including efficient management of the available resources, he said.
Though the situation remains volatile and uncertain in the near-term due to pandemic, the company remains confident of the medium to long-term growth prospects and its ability to manage the crisis and come out of it successfully, he concluded.
Please Email the Editor