The Hindu Business Line : Erkadi Systems in production pact with Esab

IN a bid to consolidate the hold over its anaesthesia equipment market, the Bangalore-based Erkadi Systems has entered into an exclusive production arrangement with the Swedish company's subsidiary, Esab India. The Sweidsh subsdiary also manufactures industrial machines such as welding equipment in India.

Informing this here, Mr K.Y. Ashok Murthy, Managing Partner of Erkadi, said under the new tie-up, in terms of an agreement recently executed with Esab India Ltd, a range of indigenously manufactured anaesthesia equipment will be made by Esab, which hitherto made products of a similar nature.

The manufacturing capacities of Esab India will now be utilised by Erkadi Systems, which will be responsible, solely, for all operations relating to marketing and developments in the anaesthesia marketplace.

The arrangement with Esab India provides a quality - tested, reliable manufacturing facility for Erkadi Systems whose R & D and marketing strengths will now enjoy a faster-to-market product cycle, and enable a new range of machines based on novel Erkadi Systems design to reach the marketplace.

Mr Murthy said his company has over the last few years, introduced innovative medical equipments such as pulse oximeters, ICU ventilators, anaesthesia ventilators and compressors.

Though the anaesthesia equipment markets is estimated at Rs 110 crore, it is fragmented among a few players with majority of them not producing the end-to-end solutions. Erkadi hopes to foray into this space with the new arrangement.

The arrangement with Esab, which had a leadership position in anaesthesia machines, will allow the Indian company to establish a completely indigenous supply source for definitive solutions for world-class anaesthesia practice, Mr Murhty said.

Esab India has the largest installed base of any Indian manufactured anaesthesia machine.

Their existing customers will continue to receive support from Erkadi Systems.

With almost complete range of anaesthesia machines under its brand name, Erkadi expects its turnover to increase by double to Rs 20 crore.

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