About Aakaar Medical Technologies Limited
BUSINESS OVERVIEW
They are a medical aesthetics company offering a comprehensive range of advanced cosmetic products and devices. Their portfolio includes both their own brands—comprising domestically manufactured products and internationally sourced devices—and imported brands from countries such as Korea, Spain, Italy, and Austria. They have carved a niche in the medical aesthetics industry by exclusively operating through business-to-business (B2B) channels for distribution and sales. Their primary clientele includes dermatologists, plastic surgeons, and aesthetic physicians, who either retail their products to end consumers or utilize device consumables in their treatments. A significant portion of their revenue is generated from aesthetic products, and they remain committed to expanding and strengthening this product segment.
The Company have total 177 employees on payroll as of March 31, 2025. The Bankers to the Company are ICICI Bank Limited and HDFC Bank Limited.
INDUSTRY ANALYSIS
Indian Medical Aesthetics and Cosmetic Dermatology Market Overview
The Indian medical aesthetics and cosmetic dermatology industry has evolved from a niche segment in the late 1990s to a rapidly expanding and recognized market today. The initial adoption of treatments such as chemical peels, microdermabrasion, and basic laser therapies began when Indian dermatologists and plastic surgeons brought specialized knowledge from overseas. Over time, advancements in technology and reduced treatment costs have made aesthetic procedures more accessible to a broader population.
The surge in internet usage, social media influence, and celebrity endorsements has further boosted consumer awareness and acceptance. Additionally, India’s relatively low medical treatment costs have made it a popular destination for international aesthetic patients. Presently, a wide array of treatments—including Botox, dermal fillers, advanced laser therapies, and hair restoration—are offered by specialized clinics and professionals across the country.
The industry’s growth is driven by shifting consumer attitudes, rising aspirations among the affluent middle class, and an increasing view of aesthetic procedures as safe, effective, and affordable options. The market expansion is also supported by the rising prevalence of dermatological conditions that are often addressed through cosmetic treatments:
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Hair Loss: Androgenetic alopecia affects 50–60% of men aged 30–50 and 35–45% of women, along with other forms like telogen effluvium and alopecia areata, contributing significantly to treatment demand.
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Skin Conditions: Factors such as climate diversity, urban crowding, hygiene issues, dietary habits, and pollution are driving higher incidences of skin diseases across India.
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Aging Skin: With India’s elderly population (aged 60+) expected to rise from ~153 million in 2024 to 347 million by 2050, the demand for anti-aging and skin rejuvenation treatments is poised for substantial growth.
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Pigmentation Disorders: A study across major Indian cities found that over 80% of the population displays some form of facial pigmentation, including melasma, dark circles, and hyperpigmented spots.
In terms of market size, the Indian medical aesthetics and cosmetic dermatology segment was valued at USD 283.9 million in CY2024 (covering products and devices sold to dermatologists, plastic surgeons, and similar practitioners). It is projected to grow at a CAGR of 13.9%, reaching USD 618.8 million by CY2030, reflecting the sector’s strong growth potential and expanding consumer base.
BUSINESS STRENGTHS
1. Experienced Leadership
Led by Founder & Managing Director Mr. Dilip Meswani, a qualified Biomedical Engineer with over 20 years in the industry, and CEO Dr. Rahul Sawakhande, who brings rich experience from companies like Galderma, Pfizer, and Piramal Healthcare, providing strong strategic and operational leadership.
2. Wide and Evolving Customer Base
Serves over 5,200 doctors and clinic chains across India as of FY 2023–24, with top 10 customers contributing only 10.96% of revenue, ensuring low client concentration risk and consistent customer additions annually.
3. Diverse Product Portfolio
Offers 154 SKUs across segments like Home Care, Professional Care, Injectables, Contouring, and Devices, making it a comprehensive solution provider for dermatologists. Over 5.4 lakh units sold in FY 2024–25.
4. Robust Pan-India Distribution Network
Partners with Parekh Integrated Services Pvt. Ltd. (PISPL) for consignment sales and nationwide warehousing at 21 centers, enabling faster delivery and deeper market penetration, with majority revenue projected through this channel.
BUSINESS STRATEGIES
1. Geographical Expansion and Sales Team Growth
Expanding presence in both existing and new territories, with a focus on Tier 2 cities like Nashik, Baroda, Rajkot, Udaipur, Jodhpur, and Ranchi. Sales team strength increased from 53 in FY 2021–22 to 133 as of March 31, 2024.
2. New Brand Launches and Category Diversification
Introducing new brands across professional care, home care, and aesthetic devices, while entering adjacent healthcare segments such as plastic surgery, maxillofacial, obstetrics, and gynecology to broaden the customer base.
3. Revenue Growth from Own Brands
Emphasis on scaling Aakaar-branded products through third-party manufacturing under registered trademarks. Revenue from Own Brands grew from ₹774.47 lakhs in FY 2023 to ₹2,311.15 lakhs in FY 2024–25, reflecting a 72.75% CAGR.
BUSINESS RISK FACTORS & CONCERNS
1. Dependency on Imported Brands
A significant portion of revenue is generated from third-party imported brands, exposing the company to risks related to international trade, supply chain disruptions, and regulatory changes.
2. Raw Material and Input Cost Volatility
Fluctuations in raw material prices, utilities, transportation, and logistics can adversely impact product pricing, profitability, and financial performance.
3. Reliance on Third-Party Manufacturers
Outsourced manufacturing through domestic and international partners increases exposure to risks related to supply continuity, manufacturer stability, quality control, trade secret protection, and regulatory compliance.
4. Geographical Concentration Risk
A substantial portion of revenue is derived from Maharashtra and Karnataka, making the business vulnerable to regional economic or regulatory disruptions.
5. Rising Market Competition
The growing number of aesthetic clinics and practitioners in India is driving price-based competition, especially in the mass-market segment, impacting margins and profitability.
6. Intense Industry Competition
Competition from both domestic and international players in a rapidly evolving market with frequent innovation and changing consumer preferences may affect market share and growth prospects.
Aakaar Medical Technologies operates in a highly competitive and dynamic medical aesthetics market. Its dependency on third-party manufacturers and imported brands, along with geographical revenue concentration and pricing pressure, exposes the business to multiple operational and financial risks.
