The Hindu Business Line : Opto Circuits bid to strengthen market share

MR VINOD RAMNANI, Chairman and Managing Director, Opto Circuits, displaying a healthcare equipment at a press conference in Bangalore on Monday. — G.R.N. Somashekar

Bangalore , March 27

Opto Circuits (India) Ltd plans to drive its growth objective through a mix of inorganic and organic growth to consolidate its market share in the healthcare products.

The company had acquired EuroCor in January for a total consideration of 3.91 million. EuroCor is a leading German company with worldwide sales of its cardiac stents, which includes drug-eluting stents.

Opto Circuits, which announced its second public issue to raise funds through booking building route, said its objective was to achieve synergies while leveraging its selling and distribution strengths in the overseas and domestic markets. It would finalise the price band about two days before the issue slated to open on March 31.

The company currently manufactures a range of healthcare products such as SPO2 probes, reusable sensor pulse oxymeters and cholestrol monitors for the export and domestic markets.

Addressing a press conference here on Monday, Mr Vinod Ramnani, Chairman and Managing Director, said the company was raising funds through its follow-on-public offer to upgrade its R&D infrastructure and set up marketing offices in key locations in Europe and South America as part its effort to reach new markets.

Mr B. Bhaskar, Chief Financial Officer, said in addition to the acquisition cost, the deal also envisaged a restricted revenue sharing option to EuroCor of 3 million each in the next two years if the acquired company's turnover exceeds 10 million and 20 million, respectively by February 2007 and 2008.