New Delhi: Micro Life Sciences, India’s largest medical devices group, is in discussions to raise close to $150 million selling 3-4% stake, said people aware of the development.
Backed by Warburg Pincus PE, the Vapi-based Micro Life is likely to be valued at $5 billion in this pre-IPO round of fundraising, sources said.
The promoters are engaged in talks with a couple of global buyout funds to dilute additional stake, added sources.
In 2022, Warburg acquired about 11% stake in Micro Life for $210 million, valuing the company at $2 billion.
Founded by the Bilakhia family, Micro Life is the parent organization of Meril group of companies – India’s largest medical devices company. Meril offers a diversified product portfolio in 5 therapy areas – cardiovascular including structural heart devices, orthopaedic implants, endo-surgery, surgical robotics & in-vitro diagnostics.
The company currently has approximately 4,000 employees and business presence in over 140 countries. The Micro group consists of Micro Life Sciences (Micro), Meril Life Sciences, Meril India, Meril Healthcare, Meril Diagnostic, Meril Endo Surgery and Meril Medical Innovations.
Micro Life is the holding arm of Bilakhia Holdings Private Limited’s (BHPL) healthcare division.
The company had posted a revenue of $338.4 million (Rs 2,770 cr) in FY23 with an EBITDA of $102.7 million (Rs 842 cr), according to Tracxn data. The group is expected to post an EBITDA of $250 million (Rs 2,100 cr) by FY25, said sources.
With the proposed fund, Meril Life plans to set up new manufacturing facilities and product launches in cardiology. Currently, 58-60% of Micro’s consolidated sales were derived from exports, including in regulated markets.
Mails sent to Meril Life and Warburg remained unanswered.
Meril India also imports and purchases orthopaedic products, viz, knee replacement kits from its group entities, Maxx Orthopedics Inc. and MHPL, and sells the same in the domestic market under the brand -Freedom Knee. Meril India has a widespread distribution network comprising more than 120 dealers spread across India.
During FY23, Micro earned nearly 40% of its revenue from cardiovascular and coronary implants (stents, balloon and heart valves), 35% from orthopaedic implants (knee and hip implants), 10% from the diagnostic segment, nearly 10% from the endo surgery segment (sutures and mechanical closures) and nearly 5% from trading of robotics systems, according to a CARE Ratings report.
The Bilakhia group was founded by Gafurbhai Bilakhia and is now being managed by his three sons, Yunus Bilakhia, Jakir Bilakhia, and Anjum Bilakhia. Bilakhia Holdings is the erstwhile promoter of Hubergroup India (HIPL) and Bayer Vapi Private Limited (BVPL). After divesting their stake in HIPL and BVPL, the group utilised the sale proceeds to foray into the healthcare business in 2006.
Meril Life is one among the top cardiac stent makers in India besides Sahajanand Medical Technologies (SMT) and Everstone-owned Translumina.
In the recent past, Indian Medical devices manufacturers have been on the radar of global private equity funds.
In May, KKR had acquired surgical sutures maker Healthium Medtech (formerly Sutures India) from Apax Partners for an enterprise value of Rs 7,000 crore.
Besides Micro, Warburg Pincus also owns a majority stake in Chennai-based cataract lens manufacturer Appasamy Associates at a valuation of Rs 3,000-3,200 crore – acquired in April 2024.
SMT, India’s largest cardiac stent maker, is also backed by Morgan Stanley PE Asia and Samara Capital – which collectively own 49% of SMT.
There is good demand for healthcare products in India as well as in other developing countries. The rising health consciousness, increasing cases of sedentary lifestyle diseases including coronary heart diseases and increased healthcare expenditure is expected to drive the market in the medium term, added the report.
