Acquisition Opportunity in a High growth diversified Digital X-ray technology business

Project Name: Digital X-Ray Technology Business

Asking Price: USD 5 MILL (FULL SALE)
Sales Revenue: USD 2 MILL (Around INR 15 cr.)
EBITDA: Available on request
Cash Flow: Available on request
Location: Pune
Years of Establishment: 2012
Note: Asking price includes the property of 20000 sq.ft. Land & structure, Pune

A professionally well managed & fast-growing Company having carved a niche in the X-Ray Imaging sector where it has an impressive lineup of products in the Digital X-Ray space for the Industrial, Food, Medical (Dental) and Security domains.

 

Property Information:

Manufacturing setup space of around 20000 sq.ft owned by the company in Pune

BUSINESS OPERATIONS

Started in 2012 with an investment spanning over INR 20 Cr. (USD 2.6 MILL), meeting BS 5295 cleanroom standards and supporting multiple product lines.

 

The Company is qualified as a ”Class I Local Supplier” under the Public Procurement (Preference to Make in India), Order 2017 issued by the Government of India, Ministry of Commerce and Industry.

 

All relevant approvals of AERB & others, certifications and regulatory compliances in place. The company has invested tremendously in R&D activities and continuously engaged itself with new technologies, designs and products.

 

The company earns revenue from 3 major streams:

  • Sale of Machines – Government / Private
  • AMC of Machines after Warranty Period Completion
  • Rental of Machines – Long Term / Short Term

MARKET

Global Baggage Scanner Market is around USD 5 Bn whereas the Annual Market Size in India is more than USD 30 Mn which is around 1500 – 2000 machines. The Indian Market is dominated mostly by MNC’s. The Accelerated Growth Rate is expected to be more than 100% per annum for the next 5 to 7 years in this sector.

 

In the Dental sector, there are around 3,00,000 dentists, 2,00,000 clinics and 50,000 specialists, as per 2018 Data based on dentists registered with IDA (about 30 % – 40 % do not register).

 

Current penetration – 30% are digital in top 10 cities – 10% are digital across the rest of the country. The Addressable Need – 50,000 dentists growing @ 20% per annum.

 

Besides the huge opportunity that lies ahead, other factors that add up are the Make in India initiatives which the government is pushing to encourage indigenously manufactured products of which our company is one of the few Indian players that provide Indian manufactured products using the latest state-of-the-art technology.

Products & Services

True “Made In India” Product like Baggage Scanners, X-Ray generators, Digital Dental RVGs, Dental X-Rays and UltraVoilet Germicidal Irradiation based disinfection products.

 

The Company is a Pioneer in Digital X-ray Industrial inspection System and is one of the first and only company in India to receive license for its commercial production.

OTHER INFORMATION

Employees: Team size around 60 staff right from Senior Scientists to Mechanical Fitters and Technicians including around 30 staff specifically for R&D only.

Years of Establishment: 2012

Clients:

With a PAN India presence, the clients category ranges from various large Private Corporates to Government Institutions & Corporations spanning across various States.

The company has also supplied its products to companies at various international locations.

 

WHY INVEST:

  • – A Dynamic & highly profitable niche line of business with strong entry barriers for competitors which makes the company an ideal pick for acquisition by larger corporates or
    overseas players
  • – Company growing at over 50% CAGR
  • – Tremendous growth potential on account of spare capacity of more than 50%
  • – Projected EBITDA: More than 20%
  • – Product designed and developed ground up for Indian conditions with Indian components and inhouse technology teams, thus giving end to end control over the product and resulting in an improvement of the overall margins over the lifetime of the machine
  • – Global expansion plans in UK, USA, Australia, South East Asia and Africa and other cities PAN India

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