Kotak Alt to Invest INR 400 Cr in Medical Device Firm Biorad Medisys

This strategic financial move is expected to bolster Biorad Medisys’s operational capabilities and financial health.

Kotak Strategic Situations India Fund II (KSSF II), managed by Kotak Alternate Asset Managers Limited (Kotak Alt), is going to invest up to INR 400 Cr in Biorad Medisys, a medical device manufacturer.

The new infusion of funds will primarily be earmarked for the establishment of a new manufacturing facility, repayment of existing liabilities, and to cater to the growing working capital needs, as per the official statement from the company.

This strategic financial move is expected to bolster Biorad Medisys’s operational capabilities and financial health.

Sharing thoughts, Eshwar Karra, CEO, Kotak Strategic Situations India Fund, Kotak Alternate Asset Managers said, “The Indian medical devices industry is at an inflexion point, with increasing demand for quality healthcare along with the government’s support for domestic manufacturers through the ‘Make in India’ campaign. We believe that Biorad Medisys is well poised to capture this growth over the coming years.”

Founded in 1999 by J M Hegde, Biorad Medisys is a leading manufacturer of medical devices. The company’s vision is to enhance access, redefine approaches, and accommodate the lives of all individuals through continuous medical advancements.

Talking about the investment, Jitendra Hegde, MD, Biorad Medisys said, “We are excited to have an investor on board who shares our vision of transforming the Indian medical devices industry and has a strong pedigree and successful track record of investing in the healthcare sector in India. We will now strive to scale the business to newer heights through sustainable value creation and providing best-in-class quality and performance.”

He further highlighted that Biorad will continue to cater to several segments by providing quality medical consumables, implants and equipment.

“We are delighted to back Jitendra Hegde in building Biorad into the best-in-class medical devices manufacturing institution in India. We look forward to supporting the team at Biorad as they embark on their next phase of sustainable growth and profitability,” Rahul Chhaparwal, partner- Kotak Strategic Situations India Fund, Kotak Alternate Asset Managers, stated.

Kotak Strategic Situations India Fund II (KSSF II) is managed by Kotak Investment Advisors Limited (KIAL) and was announced on March 28, 2023. Domiciled in Gujarat’s GIFT City, the fund raised $1.25 billion of the targeted $1.6 billion corpus. It provides strategic solution capital across growth and value companies.

Last year, India's Kotak Mahindra Group asset management arm, Kotak Strategic Situations Fund (KSSF) planned to invest around INR 1,600 Cr in the recently acquired active pharmaceutical ingredients (API) business by Nimmagadda Prasad, from Viatris last week.

Reportedly, to support this acquisition, KSSF contributed $200 million in funding, a combination of structured debt and equity.

Moreover, Deutsche Bank and DBS also financed the acquisition. However, the exact figure of the transaction could not be ascertained.