Date:13/12/2005 URL: http://www.thehindubusinessline.com/2005/12/13/stories/2005121301700300.htm

Back Opto Circuits buys German stent co

Our Bureau

Dr Michael Orlowski (right), Director & CEO, EuroCOR, and Mr Vinod Ramnani, CMD, Opto Circuits India Ltd, at a press conference in Mumbai on Monday. — Paul Noronha

Mumbai , Dec. 12

THE Bangalore-based Opto Circuits (India) Ltd has acquired Germany's EuroCOR GmbH, a company that designs and manufactures stents, for a consideration of euro 11 million (Rs 59.91 crore).

Opto Circuits has a presence in the non-invasive medical devices segment and the acquisition of the stent-maker marks Opto's diversification into the invasive medical-devices segment. Stents are wire-like devices used to remove blockages in blood vessels and EuroCOR manufactures cardiac and peripheral stents.

While the deal bolsters Opto Circuits' product portfolio, Mr Vinod Ramnani, Chairman and Managing Director of the company, said more acquisitions were in the offing. The company was targeting two more acquisitions in the US and Europe, he said and expected the deal to formalise in about three months.

The funds for the acquisition would come from the market and the banks, he said. Opto expects to raise about Rs 100 crore from the market through its public offer.

Dr Michael Orlowski, Director and Chief Executive Officer of EuroCOR, said the trigger to sell the entire equity to Opto was because it could benefit from the capital structure of Opto. Both companies have done business with each other in the past and Opto brought to the table a logistical advantage through its presence in the US, he said.

EuroCOR had about 120 employees and a manufacturing facility at Bonn (Germany), he added. Mr Ramnani said there would be no change on this count.

The total global market for stents is estimated to be about $6 billion (Rs 27,750 crore) in 2004 and is expected to rise at $10 billion (Rs 46,250 crore) by 2008, according to Opto officials. In India, about 60,000 stents have been used in a year, but price has been an inhibiting factor.

Mr Ramnani said stents were priced between Rs 50,000 and Rs 1.20 lakh and the company would look to bring it down.

Opto Circuits expects to clock sales of Rs 120 crore for the year ended March 2006 and Rs 150 crore by March 2007.

EuroCOR's current order book is to the tune of euro 1.7 million (Rs 9.26 crore) and is expected to report a topline of approximately euro 4 million (Rs 21.78 crore) in the current fiscal year. EuroCOR is projecting a topline of euro 10 million (Rs 54.46 crore) for its next fiscal year.