Mumbai, December 12, 2005:
Continuing its goal of aggressive growth and diversification
in the healthcare segment, Opto Circuits (India)
Ltd. (OCIL), India’s leading manufacturer
of non-invasive healthcare equipments based in Bangalore,
has completed the acquisition of EuroCOR GmbH, a company
that designs and manufactures various kinds of Stents in
Germany. The acquisition has been valued at €11 million
(Rs. 59.91 crore).
The deal was signed between Vinod
Ramnani, Chairman & Managing Director, OCIL
and Dr. Michael Orlowski, Director & CEO, EuroCOR
in Bonn, Germany.
EuroCOR manufactures Cardiac and Peripheral
Stents of various types, including Drug Eluting Coronary
Stents used in Critical Cardiac Care. It is one of the largest
manufacturers of Stents. By acquiring EuroCOR, OCIL gets
to access the existing as well as potential market for Stents
globally.
Announcing the acquisition, Vinod
Ramnani, Chairman & Managing Director, Opto Circuits,
said: “This acquisition of EuroCOR gives us a strong
foothold in the global arena for Stents. The total global
market for Stents was valued at $6 billion (Rs. 27,750 crore)
in 2004 and is expected to rise at $10 billion (Rs. 46,250
crore) by 2008. Whilst we are barely scratching the surface
now, we expect that the strong R&D base of EuroCOR will
lead us in the direction of greater market share and also
better margin business. This acquisition is another milestone
in the history of the growth of Opto Circuits, and will
help improve shareholder value.”
Said Dr. Michael Orlowski, CEO &
Director, EuroCOR: “We have a presence in
more than 26 countries worldwide. Although we are present
in India, this acquisition by Opto Circuits gives us a great
opportunity to access the vast potential offered by this
country. We are excited by the prospect of tapping latent
potential in developing countries.”
EuroCOR’s Stents have CE approval and
have found very rapid acceptance worldwide. The company
is in the process of applying for FDA and other major approvals
necessary for selling in major global markets. EuroCOR currently
sells its products in over 26 countries around the world.
EuroCOR’s current order book position is to the tune
of €1.7 million (Rs. 9.26 crore), and it is expected
to report a topline of approximately €4 million (Rs.
21.78 crore) in the current fiscal year. EuroCOR is projecting
rapid growth with as topline of €10 million (Rs. 54.46
crore) for its next fiscal year. EuroCOR is projecting a
topline of € 10 million (Rs. 54.46 crore) for its next
fiscal year.
For the quarter ended September 2005, OCIL
reported a topline of Rs. 29.15 crore, a 61.3% increase
from the Rs. 18.07 crore for the corresponding period of
the last year. At the same time, the bottomline improved
from Rs. 4.02 crore to Rs. 8.6 crore, a growth of 113.76%.
The results were equally impressive for the first half-year.
Topline improved 54.55% from Rs. 31.32 crore to Rs. 48.4
crore, while bottomline showed a robust growth of 83.23%
at Rs. 13.61 crore as against Rs. 7.43 crore. Half yearly
EPS stood at Rs. 5.08 (not annualized) on the enhanced equity
of Rs. 26.81 crore (after the 1:2 bonus).
Summing up the deal and its implications for
OCIL, Vinod Ramnani said: “We are confident of promoting
EuroCOR products in the Indian subcontinent, Far East, Europe,
Middle East, Central & South America. The size of the
Indian market for EuroCOR’s products is expected to
continue to expand at double-digit rates. We are ideally
positioned to achieve a 10% targeted market share for such
products in the coming years.”
