Hindustan Syringes to invest Rs 100 cr

NEW DELHI: Disposable syringe manufacturer Hindustan Syringes and Medical Devices (HMD) will invest up to Rs 100 crore in the next three years for expansion and expects the surge in demand for its products to fuel the top-line to around Rs 325 crore in the current fiscal.

"The company has been continuously investing in capacity expansion and we expect to produce nearly two billion syringes this year up from last year's 1.5 billion mark. This will push our revenues by nearly 30 per cent," HMD Joint Managing Director Rajiv Nath said.

He said the company closed the previous fiscal with revenues of Rs 250 crore and expects to touch a top line of Rs 325 crore in the current fiscal.

The company would invest Rs 30 crore per annum for the next three years to enhance its production capacity. It has also entered into technical collaboration with UK-based Star Syringe to produce auto-disposable (AD) syringes.

"AD syringes, which were initially introduced for immunisation by UNICEF, are now being used in the curative sector and see a great demand in overseas markets," Nath said.

The company is exporting these syringes to African and Latin American nations which witness a high occurrence rate of AIDS. Exports contributed Rs 46 crore to the company's overall revenues in the last fiscal.

"Countries like Uganda have banned the import of disposable syringes as they are promoting the use of AD syringes and many other countries in Africa are also in the process of phasing out the disposable syringes," he said.

He said a gradual shift from glass syringes to disposable syringes would drive the company's growth in future in both in domestic market as well as overseas markets.