PE funds vie for a majority stake in medical devices maker Sensa Core
Mumbai: KKR, TPG, Kedaara Capital, and Multiples Alternate Asset Management are among homegrown and global private equity firms in early-stage discussions to acquire a majority stake in Sensa Core Medical Instrumentation, one of India's leading medical device manufacturers, said people familiar with the matter.A potential deal is likely to value the Hyderabad-based company at about $300 million (about ₹2,600 crore), the people said. They added that the interested PE firms are likely to submit non-binding bids within the next month.The people cited above did not disclose the size of the stake the PE firms are looking to acquire.Owned by the Meruva family, Sensa Core is one of the largest domestic producers of in-vitro diagnostic analysers and point-of-care devices. Its key products include blood gas analysers, electrolyte analysers, glucose meters, lactate meters, haemoglobin meters, and cholesterol meters. Investment bank Veda Corporate Advisors is advising the promoters of Sensa Core on the potential transaction.
"The said information is baseless, and we do not respond to rumours," said Nagaraju Meruva, executive director at Sensa Core Medical Instrumentation. A KKR spokesperson declined to comment. Mails sent to TPG, Kedaara, Multiples did not elicit any response.
Founded in 2006 by Ravi K. Meruva, Sensa Core also provides operational support and maintenance services for other electrolyte analyser brands.In FY25, Sensa Core is estimated to have recorded a revenue of about ₹400 crore, and ₹80-100 crore in EBITDA, people said."Medical devices are one of the most attractive sectors for private equity investors," said a PE fund manager evaluating a potential bid for Sensa Core. "Once a strong distribution network is in place and trust is established with doctors, companies in this space tend to generate steady, predictable revenues. Today, Indian medical device manufacturers are on par with global players in terms of quality."India's medtech space is experiencing a surge in investor interest.Last week, UAE sovereign wealth fund Abu Dhabi Investment Authority (ADIA) took a minority stake in Micro Life Sciences (Meril), a Warburg Pincus-backed firm, for $200 million.Global investor KKR, which has been actively investing in the healthcare sector, acquired Healthium Medtech (formerly Sutures India) from Apax Partners in a deal valued at ₹7,000 crore last year. Prior to Apax, TPG Growth held a 75% stake in Healthium.
Last year, PE contenders KKR, TPG Capital, and Apax had shown initial interest in acquiring Sahajanand Medical Technologies (SMT), India's largest manufacturer of cardiac stents. However, the deal didn't materialise and SMT is currently preparing for an IPO. SMT counts Morgan Stanley PE Asia and Samara Capital among its investors, with the two collectively holding a 49% stake. India's medical devices industry, valued at $12 billion as of FY24, is projected to grow more than fourfold to $50 billion by 2030. Over the next 25 years, India's global market share in this industry is projected to climb to 10-12% from 1.6% currently.Indian medtech exports reached $3.8 billion in FY24, with the US as the primary market. Despite robust exports, India remains heavily import-reliant, with $8.2 billion in imports, and as much as 80-85% of medical devices sourced internationally, according to a recent EY report. With strategic growth and innovation, India is well-positioned to strengthen its medtech industry and reduce import dependency, making significant strides toward becoming a global leader in the sector, the report said.
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