Omron's Chennai Plant Set to Open by March 2025

Japanese medical device manufacturer Omron, renowned for its digital blood pressure monitoring machines, is set to make its first India-based facility operational by March 2025. Located in Chennai, Tamil Nadu, this facility comes with an estimated investment of ₹128 crore. Construction is already underway.

Omron has applied for benefits under the Indian government's Production Linked Incentive (PLI) scheme for the new plant, which is expected to start producing digital sphygmomanometers (BP monitoring machines) once operational. The PLI scheme's benefits will become active at least one year after the commencement of production.

The Chennai facility will focus on producing a range of cardiovascular health monitoring devices, including thermometers, nebulizers, weighing scales, and ECG monitoring devices. This diversification is part of Omron's strategy to expand its 'Made-in-India' product range.

In a recent development, Omron has entered the atrial fibrillation (AFib) detection segment, a critical area given AFib's role as a major risk factor for strokes. The company plans to expand its offerings in this space, with home ECG monitoring as one component.

Tetsuya Yamada, Managing Director of Omron India Healthcare, remarked that India is one of Omron's top five global markets, contributing about 3% of the company's global turnover. He noted that nearly 90% of Omron's India revenue comes from individual sales. "Growth has been good, around 10% in the home care segment. We would look at further growth... In the hypertension management segment, the digital penetration is growing at a high rate of 20%," Yamada told businessline.

Omron's other significant markets include the USA, China, Japan, Europe, and Russia. Yamada highlighted that the penetration of medical devices in India, particularly those used in the home-care segment, is poised to increase. Comparing India to Brazil, he noted that Brazil, with a population of 230 million, ranks sixth in Omron's market size. Given India's population of over 1.4 billion, primarily younger, Yamada sees substantial potential for growth.

Post-Covid, the penetration of digital sphygmomanometers in India has risen from 2% to 5%. Currently, most of the devices in India, especially those for the home-care segment, are imported from Vietnam. Notably, one out of every two digital sphygmomanometers sold in India is an Omron product, while four out of every ten nebulizers used for home care are from Omron.

Omron's buyer profiling indicates that approximately 70% of purchases are made by caregivers, primarily children, on behalf of the geriatric population. This suggests a strong and growing demand for home healthcare products in the Indian market.

HBL