Poly Medicure Share price and Fundamental Analysis

Company History

Poly Medicure Limited was incorporated on 30th March 1995. The Company is a manufacturer/producer of Medical Devices. It manufactures and supply, in India and internationally, a diverse portfolio of medical devices in the product verticals of infusion therapy, oncology, anesthesia and respiratory care, urology, gastroenterology, blood management and blood collection, surgery and wound drainage, dialysis, central venous access catheters, veterinary medical devices and others.

The Company's product portfolio comprises of more than 130 SKUs of medical devices in the product verticals of infusion therapy, oncology, anesthesia and respiratory care, urology, gastroenterology, blood management and blood collection, surgery and wound drainage, dialysis, central venous access catheters, veterinary medical devices, and others. It currently operate 10 manufacturing facilities across India, China, Egypt and Italy. In India, it operate 7 manufacturing facilities, four of which are situated at Faridabad (Haryana), and 2 in Jaipur (Rajasthan) and 1 in Haridwar (Uttarakhand). It operate 1 manufacturing facility in China through its wholly owned subsidiary Poly Medicure (Laiyang) Company Limited.

The Company started commercial production by April' 97 with an installed capacity of Medical Disposables (16500000 Nos ) and Cold/Hot Therapy Packs (500000 Nos).

During the year 1997-98, the company produced 51.06 lac nos. of Medical Disposables which constitute 42.60% of the installed capacity utilisation. The company exported products of the value Rs. 50.28 lacs. The Company has been registered as an ISO 9002 company by SGS Yarsley International Certification Service Limited, United Kingdom.

During the year 2003, the Company entered into a Joint Venture arrangement for putting up a plant in Egypt for manufacturing of various Medical Disposables. It has subscribed to 23% (6,90,000 Egyptian Pounds equivalent to Rs. 71,07,000/-) of the share capital of the Joint Venture Entity. The Overseas Joint Venture is expected to commence commercial production during the current financial year.

During the year 2005, it expanded installed capacity from 1000 lacs nos. to 1200 lacs nos. of Medical Disposables. The Company successfully implemented Quality Management System and has been accredited by SGS Yarsley International Certification Services, United Kingdom with ISO 9001:2000, ISO 13488:1996 and CE mark for some of its products. For the rest of the products, it has been accredited CE mark by DNV, Norway thus making the entire product range match up to International Quality Standards.

In 2008, the Company's manufacturing unit located at Haridwar, Uttarakhand commenced its commercial operations.

In 2010, the Company received Silver Patent Award by Department of Pharmaceutical Ministry of Chemicals and Fertilizers, Government of India and Pharmaceuticals Export Promotion Council in recognition of commendable contribution in Medical devices patent Category. It was also awarded by India Brand Equity Foundation (IBEF), in certificate of excellence in recognition of exemplary growth and sustainable success.

As of March 31, 2015, Company had over 100 varieties of disposable medical devices, including veterinary disposable devices.

In 2015, the manufacturing facility in Jaipur, Rajasthan commenced commercial operations.

During the year 2018, the Company's wholly owned subsidiary, Poly Medicure B.V. Netherlands acquired 82% stake in Plan 1 Health s.r.l., an Italy-based manufacturing company. Apart from this, it started manufacturing operations of new plant at IIT, in Faridabad effective from 28th February, 2018.

The Company received 'Top Exporter Award' by The Plastics Export Promotion Council, Dept of Commerce, Govt. of India, 'Star Performer Award' by EEPC India Regional Award (Northern) for Export Excellence, 'Dare to Dream Award' by ZEE Business in the category of emerging Company of the year and 'Export Excellence Award' by FIA (Faridabad Industries Association), Haryana for the year 2018-19. The Company received the 'Medical Device Company of the Year 2018', award from Department of Pharmaceuticals, Government of India - Biggest recognition and Achievement since inception of the company. The award was conferred based on Company's export performance, R&D efforts and New Product launches. It was awarded 'Industrial Innovation Award' by Confederation of Indian Industries (CII) on 18th December, 2019 for securing place among the top 25 innovative companies in 2019.

The Company received the 'Forbes Asia Best under a Billion' Award in 2020 as the region's top 200 small and mid-sized companies.

The Company currently operate eight manufacturing facilities across India, China, Egypt and Italy. In India, it operate five manufacturing facilities, three of which are situated at Faridabad (Haryana), and one each in Jaipur (Rajasthan) and Haridwar (Uttarakhand). In addition, it is in the process of expanding the manufacturing capacities at facilities situated in Faridabad (Haryana) and Jaipur (Rajasthan).

Apart from this, the Company operate one manufacturing facility in China through its wholly-owned subsidiary Poly Medicure (Liayang) Company Limited that is certified to be compliant with Korea Good Manufacturing Practices by the Korea Food and Drug Administration, Ministry of Food and Drug Safety and has been accredited with a EC certificate for quality assurance system and EN ISO 13485:2016 for its quality management system. In addition, it operates one manufacturing facility in Assuit, Egypt, through our associate Ultra for Medical Products that is accredited with EC certificates or quality assurance system. It operate one manufacturing facility in Italy through step-down subsidiary Plan1 Health S.R.L., which is accredited with EC certification for quality assurance system and EN 13485:2016 for its quality management system by DEKRA Certification B.V. Netherlands.

The Company use different technologies for manufacturing different medical devices, including injection molding, extrusion, insert molding, blow molding, ultrasonic welding, UV bonding and laser welding and has expertise in handling different kind of specialized plastic materials. The manufacturing of components takes place on highly advanced PLC controlled plastic injection molding machines by using hot runner system or runner less mold technology, which is a clean technology and generates minimal scrap. Tubes are produced on highly accurate extruders with good yield. Its assembly machines are built-in with poka-yoke features and vision inspection systems. The manufacturing facility is equipped with CNC controlled machines which enable accurate and efficient control over fabrication of molds. It further employ kaizen or lean manufacturing technology for cycle time reduction in various manufacturing processes.

Its manufacturing process comprises of using raw materials in molding or tubing through extruders, following which components are assembled and samples are tested. The products are packed using a blister packing machine in duplex or correlated boxes and the final products undergo sterilization and quality checks. These include, automated arms installed at assembly machines, which are designed and programmed for specific assembly functions that may be deployed for various product variants. The manufacturing equipment is also supported by Servo' systems that enable precise machine movements that improves accuracy in processes and limits generation of scrap.

The Company operate the R&D Centre at Faridabad, Haryana which is approved by DSIR. Our R&D efforts are primarily focused on developing new products within existing product verticals as well as introduce products to enter into new product verticals, particularly focusing on fluid management within non-communicable diseases segment, including oncology, nephrology and cardiology, and further improving existing processes and production cost efficiency.

As of March 31, 2021, the Company had over 130 SKUs of medical devices. Besides this, it supplied products to over 110 countries, in Europe, Africa, Americas, Australia, and Asia through a network of over 220 distributors in these jurisdictions.

The Company's Indian and International manufacturing facilities have been accredited with several international quality certifications. All manufacturing facilities have been accredited with the EC certificates for quality assurance systems and EN ISO 13485:2016 certifications. Further, Faridabad Facilities and Haridwar Facility, have also been accredited with management system certificates for compliance with ISO 9001:2015.