US healthcare co Steris to set up 100% arm in India
MUMBAI: Steris, a $1.1-bn healthcare equipment company, plans to set up a wholly- owned arm in India to sell its devices and products in the country's booming healthcare market.
The company has filed an application with the Foreign Investment Promotion Board (FIPB) seeking approval to invest in India. Steris plans to make an initial investment of $1,00,000 to set up the wholly-owned subsidiary. Shares of the Indian subsidiary will be held by Steris Asia Pacific and Steris Latin America, both wholly-owned indirect subsidiaries of Steris.
Steris - which has a diversified portfolio targeting the healthcare, lifesciences and pharmaceutical industries - proposes to market, distribute and sell its products in India through the subsidiary.
The Indian arm will also be involved in servicing of medical, surgical and other sterilisation products. The ministry of health has already cleared the proposal from the technical angle.
The US-based healthcare equipment company is the latest among global healthcare firms to consider investing in India. The FIPB recently approved a proposal by the German medical device company BSN Medical GmbH. BSN Medical - a JV of Beiersdorf and Smith and Nephew - plans to set up a new JV in India with 61% foreign equity. The JV will be involved in manufacturing and importing products, as well as in distributing, marketing and sales.
With the advent of the product-patent era, foreign investment in the drugs and pharmaceuticals sector has increased. The sector has seen the maximum FDI inflows, worth $340m (Rs 1571 crore), in '04.
According to the Department of Industrial Policy and Promotion, the sector also saw the largest increase in FDI inflow among the major sectors, growing over 6 fold from just $60.72m (Rs 279 crore) in '03. Drugs and pharmaceuticals figured among the top five sectors accounting for maximum FDI in the country during April '02 to December '04.
June 14, 2005