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China's Neusoft and Trivitron Plan to Set up Medical Equipments Unit

The Neusoft group, China's largest medical technology solutions provider with a turnover of $700 million, is planning a joint venture with the Chennai-based //Trivitron group to set up a medical equipment manufacturing unit, possibly in Bangalore.

"The potential joint venture will earmark an initial investment of $5 million and will gradually scale it up to $25 million over a period of four years," a Neusoft press statement said Tuesday.

"India is the most important market for Neusoft and we are very happy to set up this medical equipment manufacturing unit in India. We are looking at tapping the talent base available in India to set up Neusoft's second manufacturing base outside China," said Zheng Quanlu, president of Neusoft Medical Systems Co. Ltd.

Neusoft has already established its direct service base in Bangalore in association with Trivitron for its CT and MRI systems and will be expanding this facility to other locations in the country.

The new entity has plans to manufacture products and accessories like linear accelerator, laser imager, bioanalyzer and PACS solution in the future.

The Neusoft-Trivitron joint venture is considering Tamil Nadu, Maharashtra, Karnataka and Delhi to set up its manufacturing facility.

"Our production facility here will reduce the cost of medical equipment in India thereby bringing down the cost of healthcare substantially," Zheng added.

The Neusoft-Trivitron joint venture is looking at achieving an annual turnover of over Rs.1 billion by 2007. The manufacturing facility is expected to offer 200 jobs initially and will grow to 1,000 jobs in the next three years.

"After the software, retail and finance boom in India, it is our firm belief that the next big growth area for India is going to be in indigenous medical technology," said G.S.K. Velu, managing director of the Trivitron group.

"Neusoft has internationally installe
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