About AMKAY PRODUCTS Limited

Amkay Products manufactures, assembles & markets a comprehensive portfolio of medical devices, disposables, and other Healthcare Products like Face Mask, Alcohol Swabs, Lancet Needles, Nebulizer, Pulse Oximeter, surgeon caps, etc. used by healthcare centers, hospitals/clinics, nursing homes etc. widely spread across India. In addition, we are also engaged in branding and marketing of some of the products like Diapers, Plastic Gloves, Suction Machines, etc.

Amkay Products started its operations in the year 2008 with the manufacturing and supply of one product in a manufacturing unit taken on rent at Vasai in Mumbai, measuring 980 sq.feet. Later in the year 2012, Amkay Products purchased a manufacturing unit at Acchad Industrial Area, Thane, measuring around 20,000 square feet. In 2016, Amkay Products purchased another manufacturing unit at Acchad Industrial Area, Thane, measuring around 6000 square feet, for manufacturing & supplying Bio Bags.

The company’s product portfolio comprises more than 30 products including Respiratory Disease Related Medical Devices, Surgical Disposables, Home Healthcare Products, and Other Healthcare Products. Presently, Amkay Products is manufacturing more than 20 products along with Branding & trading of more than 10 products.

Our manufacturing facilities are equipped with requisite infrastructure including machinery, a testing laboratory other handling equipment to facilitate a smooth manufacturing process with a total area of approx. 26000 sq. ft. Further, our company has accreditation with ISO 9001:2015 for quality management systems from QRO Certification LLP.

The Company was founded in the year 2007 by one of our Promoters, Kashyap Pravin Mody, who has more than 20 years of experience in the associated industry. Later, in 2011, Hemanshu Kantilal Batavia joined the company as a Director who has an experience of more than 12 years in the said industry. 

As of December 31, 2023, the Company has employed approximately 75 employees at various levels of the Organization. In addition, the company contracts with third-party manpower for laborers for our manufacturing units I & II. The number of contract laborers varies from time to time based on the nature and extent of work.

Our products are spread across India and we have generated around 99.60%, 98.94 %, 98.97%, and 99.18% of our total revenue from domestic sales in periods ending December 31, 2023, and fiscal 2023, 2022, and 2021 respectively. Further, the company has also exported a small portion of its products to countries like Bhutan, Nepal & Qatar and generated around 0.40%, 1.06%, 1.03%, and 0.82% of our total revenue from sales in the period ending December 31, 2023, & fiscal 2023, 2022 and 2021 respectively.

MEDICAL DEVICES INDUSTRY IN INDIA

The medical devices sector in India comprises large multinationals and small and midsized companies. The size of the Indian medical devices market is estimated at Rs. 90,000 crore (US$ 11 billion) in 2022 and is expected to grow to US$ 50 billion by 2030 with a CAGR of 16.4 %. The Indian medical device market share in the global market is estimated to be 1.65%. India is the 4th largest Asian medical devices market after Japan, China, and South Korea, and among the top 20 medical devices markets globally. Between 2020-30, the diagnostic imaging market is likely to expand at a CAGR of 16.4%. Export of medical devices from India stood at Rs. 19, 803 crore (US$ 2.40 billion) in FY22. The exports of medical devices during April-December, 2022 stood at Rs. 20,511 crore (US$ 2.49 billion), and are expected to rise to US$ 10 billion by 2025. To increase the export of medical devices in the country, the Ministry of Health and Family Welfare (MOHFW) and Central Drugs Standard Control Organisation (CDSCO) implemented many initiatives including PLI Schemes and 100% FDI to boost the medical device market

The Government of India has commenced various initiatives to strengthen the medical devices sector, with emphasis on research and development (R&D) and 100% FDI for medical devices to boost the market.
1. The Union Cabinet approved the National Medical Devices Policy, 2023 on April 26, 2023. The National Medical Devices Policy, of 2023 is expected to facilitate an orderly growth of the medical device sector to meet the public health objectives of access, affordability, quality, and innovation. The policy is expected to help the Medical Devices Sector grow from the present US$ 11 billion to US$ 50 billion by 2030.
2. Under the PLI scheme for Medical Devices, till now, a total of 26 projects have been approved, with a committed investment of Rs. 1,206 crore (US$ 147 million) to enable growth and innovation in the MedTech industry and make India the global hub for manufacturing and innovation in the coming years. 
3. In August 2022, the Department of Pharmaceuticals greenlit the "Promotion of Medical Device Parks" program from FY21-25 with a total financial investment of Rs. 400 crores (US$ 48.97 million), with maximum support under the program of Rs. 100 crore (US$ 12.24 million) for each Medical Device Park.
4. In the Union Budget 2022-23, Rs. 86,200 crore (US$ 11.3 billion) was allocated as a budget for the pharmaceutical and healthcare sector

AMKAY PRODUCTS STRENGTHS AND STRATEGIES

1. Strong portfolio and diverse range of products across consumer preferences.
2. Extensive network of dealers covering major parts of India
3. Quality Assurance ensuring standardized product quality
4. Diversified revenue from multiple geographies
5. Experienced Promoter with senior management team having successful track record & industry knowledge
6. Enhancing branding, promotional and digital activities
7. Continue to strive for cost efficiency & invest in capital expenditure

AMKAY PRODUCTS RISK FACTORS AND CONCERNS

1. Amkay Products generates a major portion of revenue from certain geographical regions like Maharashtra and any adverse developments affecting our operations in these regions could have an adverse impact on our revenue and results of operations.
2. Dependency on third parties to manufacture some of the products.
3. Risk relating to the sourcing of raw materials and components for manufacturing and assembly of the medical devices and disposables from third parties.
4. A substantial portion of the revenues has been dependent upon a few customers, with which the company do not have any firm commitments.
5. Requirement to obtain, renew, or maintain certain statutory and regulatory permits and approvals required to operate business on timely basis.
6. The company is involved in certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on business, results of operations, and financial condition.