Medtronic reportedly eyes stake in India's Trivitron Healthcare

Medtronic ($MDT) is negotiating with Trivitron Healthcare for a possible equity investment in the Indian medical technology company, the Business Standard reports.

Of course, neither Medtronic nor Trivitron would comment to the publication on the reported negotiations. But if both successful and true, the move would follow-up on Medtronic CEO Omar Ishrak's broader strategy, outlined last fall, to advance into emerging markets such as India with an eye toward helping the country build out its healthcare infrastructure. As MassDevice reminds us, Ishrak has portrayed India and other emerging markets as less risky for product development than the U.S.

Trivitron, which bills itself on its website as the "largest Indian Medical Technology Company," is focused on areas including cardiology and implantable devices, imaging, diagnostics, and ophthalmology. And the Chennai-based company wants to raise significant cash–about $100 million, according to the Business Standard story, so Medtronic may not be the only investor Trivitron is courting.

A cash infusion of this scale would allow Trivitron to offer partial exits to private equity investors HSBC Private Equity (Headland Capital Partners) and ePlanet Ventures. And $100 million would help Trivitron expand its operations both at its Chennai technology park location and through acquisitions, according to the story. The company is also trying to evolve from a medical equipment distributor into more of a manufacturer in order to boost revenue, the article notes, and so the technology park expansion is key to making this strategy happen.

Trivitron is ramping up at the facility to manufacture everything from ultrasound systems to molecular diagnostic products and implantable medical devices, the story explains.

- read the Business Standard story
- check out MassDevice's take