Medical devices maker Polymed eyes global expansion with new plants, strategic M&A

New Manufacturing Facilities Signal Expansion Intent

Poly Medicure Ltd, widely recognized as Polymed, is ramping up its global footprint through the commissioning of new manufacturing plants in India and overseas. The company, a leading player in the medical devices space, is investing in fresh capacity to meet growing demand from international markets and strengthen its export capabilities.

According to company officials, Polymed is currently building two state-of-the-art manufacturing facilities—one in IMT Faridabad (Haryana) and another in the United States. The Faridabad plant is expected to be operational by the end of FY26, while the U.S. facility is aimed at tapping directly into the lucrative North American healthcare market.

“We are strategically investing in locations that bring us closer to key markets and enhance our supply chain resilience,” said Himanshu Baid, Managing Director, Polymed. “With these new plants, we aim to de-risk manufacturing and comply with region-specific regulatory norms more efficiently.”

Strategic Mergers & Acquisitions on the Horizon

Beyond greenfield expansions, Polymed is actively scouting for merger and acquisition (M&A) opportunities in Europe and North America. The company is particularly focused on acquiring firms that offer niche product portfolios or strong distribution networks.

“Our M&A strategy is designed to complement our organic growth. We are looking at synergistic opportunities where we can integrate technologies and access new customer bases faster,” Baid noted.

The company has set aside a significant portion of its capex budget for such inorganic growth. Analysts believe that this dual-track approach—combining organic expansion with targeted acquisitions—could significantly bolster Polymed’s competitive edge globally.

Rising Global Demand for Medical Devices

Polymed’s expansion plans come amid a global surge in demand for cost-effective, high-quality medical devices post-COVID-19. Countries across Europe, Southeast Asia, and Africa are increasingly turning to Indian manufacturers to bridge supply gaps and meet growing patient loads.

As a result, India’s medical device exports grew 15% year-on-year in FY24, according to data from the Engineering Export Promotion Council (EEPC), with Polymed among the key beneficiaries.

“Polymed has a solid track record in R&D and product innovation. Its ability to design customized devices for international clients is a big plus,” said Anirudh Joshi, Analyst at ICICI Securities. “Expansion into regulated markets like the U.S. and Europe will boost margins and improve brand equity.”

Strong Financials Underpin Growth Plans

Polymed’s FY24 financial results reflect its readiness to fund global expansion. The company reported a consolidated revenue of ₹1,200 crore, up 18% year-on-year, driven by strong export sales and stable domestic demand.

Its EBITDA margin remained healthy at 22.5%, with PAT standing at ₹150 crore, showcasing robust operational efficiency. The company also maintained a low debt-to-equity ratio of 0.2, giving it room to borrow if required.

“With a strong balance sheet, Polymed is well-positioned to fund both its capex and any strategic acquisitions,” said Nimisha Desai, Medical Devices Sector Specialist, Centrum Broking. “The upcoming U.S. facility is a game-changer, considering the high regulatory and compliance barriers in that region.”

Analyst and Market Sentiment Positive

Polymed shares have risen nearly 12% in the last three months on the NSE, reflecting investor confidence in the company’s growth trajectory. Brokerage houses remain bullish on the stock, citing its strong fundamentals and aggressive but well-calibrated expansion roadmap.

Motilal Oswal recently gave a "Buy" rating on the stock with a target price of ₹1,800, citing expected margin expansion and increased return ratios once the new facilities go live.

“Once operational, the U.S. plant will reduce logistic costs, increase responsiveness to client needs, and enhance overall product portfolio,” the brokerage noted in its latest report.

Investor Outlook: Long-Term Growth Story

For long-term investors, Polymed offers a compelling growth story anchored in innovation, global scalability, and operational resilience. The company's strategy to localize production in key markets while maintaining its cost leadership from India may prove effective in capturing a larger share of the $500 billion global medical devices industry.

The next two years are expected to be capital-intensive, but analysts believe Polymed's cash flows and prudent capital allocation will ensure sustainable growth.

“Polymed is entering its next growth phase. Investors should view this as a long-term compounder with expanding global relevance,” Desai concluded.