IMAP India has advised Banga Group, a manufacturer of consumer medical devices, on sale of its business to Krofta Engineering Limited (“Krofta”).

Banga Group is a well-known manufacturer of medical consumer products - Digital BP Monitors, Nebulizers, Vaporizers, Rehabilitation Products and Digital Thermometers. The company, with its manufacturing plant in North India, is largely in the B2B space supplying its products to other Indian and global brands.

Krofta Engineering, an engineering firm pioneering water treatment technologies, acquired the Banga Group to diversify into the medical products space.

Banga Group marks IMAP India’s 2nd transaction in the medical devices space in last 12 months. The medical devices industry is witnessing strong growth due to several drivers - increased awareness, growth of non communicable diseases, increased government spending, rising affordability, better insurance coverage and the current low penetration of devices in the market. This is expected to drive the US$ 11 billion industry in India at over 15% CAGR growth in the next few years.

Also, the Government of India, to give a boost to domestic manufacturing and reduce import dependence, has taken several measures - it implemented the Medical Device Rules 2017 to harmonize rules with international standards, imposed additional duties on imports, regulated prices for notified medical devices and at the same time pushed domestic manufacturing sites to improve manufacturing infrastructure. With these measures, IMAP expects to see a more vibrant industry in medical devices with interest from domestic and global players to invest and partner with firms in India.