The Hindu Business Line : Opto Circuits in talks with US cos for R&D venture

OPTO Circuits (India) Ltd, manufacturer of non-invasive healthcare apparatus, is in talks with leading companies in the US for a joint venture in research and development.

Opto, which has emerged as a leading OEM and retail market supplier to large and medium medical electronic companies and hospitals, would be tapping the large market for various sensors as a focus for the R&D joint venture. It is also mulling acquisition of two US companies specialising in invasive and non-invasive healthcare products. The company had obtained the shareholders' approval last month for raising up to $25 million to finance the proposed acquisition.

Opto had announced that it was looking at the GDR route to raise the funds. However, the board of directors would take a decision in two weeks on the instrument , including FCCB, another public issue and debt, Mr Vinod Ramnani, Chairman and Managing Director, said.

Talking to reporters here, Mr Ramnani said the negotiation on price of acquisition was in advanced stage and it was expected to be finalised before the current fiscal.

He said once the acquisition was over, Opto was planning to shift the manufacturing base to India for consolidation to take advantage of the lower costs.

Opto Circuits announced the launch of three new products, developed by its R&D division.

Mr Bodapati Bhaskar, Chief Financial Officer, said the new products, Thermal Printer, Multi Parameter Monitor (MPM) and Waveform-enabled Pulse Oximeter, were targeted at medium and small medical electronics companies in the US and the market was worth $250 million. He said the R&D investment would be increased to Rs 10 crore in three to four years to meet the company's target of introducing new products every six months to one year.

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