HMD plans to invest Rs 100 cr over 2 yrs

New Delhi, January 23: | Updated: Jan 24 2002, 05:30am hrs
Notwithstanding recession, Hindustan Syringes & Medical Devices (HMD) is planning to invest Rs 100 crore over the next two years to enhance its capacity and develop new products. "We have planned to spend over Rs 100 crore in the next couple of years to launch new products and expand our operations both in domestic and international markets," HMD joint Managing Director, Rajiv Nath told The Financial Express.

HMD is currently evaluating the market condition before chalking out a road map for the next two years, he said adding that the market expansion, product development and new launches will be financed through internal accruals.

"We may join hands with foreign partners so far as technology is concerned. But any tie-up will be essentially a licence agreement and not a joint venture," he said adding that the company may borrow from banks in case of need, but will not raise money from the capital market. HMD is a closely held company. The investments will also be made to expand existing manufacturing facilities. "The company plans to double the installed capacity of its existing facility at Ballabgarh from 1 billion units per annum of disposable syringes in the next two years," he said. The company has seven automated plants in two locations, Ballabgarh and Faridabad.

Investments will be made to increase our exports from 15 per cent of the turnover to 25 per cent of turnover by the next year, Mr Nath said. The turnover of the company is likely to cross Rs 150 crore mark in the current fiscal. The company is exporting disposable syringes, needles, surgical blades, IV cannulas and scalp vein sets.