Syrma SGS Technology acquires 51% in Johari Digital Healthcare

Syrma SGS Technology Limited has entered into definitive agreements to acquire a 51% stake in Johari Digital Healthcare Limited (“JDHL”), an end to end design-led manufacturer of electro-medical devices, or a consideration of Rs 2,295 million. Additional consideration of up to Rs 280 million is to be paid on achieving certain pre-determined milestones.

JDHL’s last three years’ turnover was as follows:
2020-21: INR 490 MN
2021-22: INR 911 MN
2022-23: INR 1,628 MN
Net profit in 2022-23 was INR 435 MN

The acquisition will enable Syrma SGS to enter the lucrative medical devices segment, a fragmented and fast growing market with high demand for quality and innovation. JDHL has a strong reputation as an end-to-end design-focused manufacturer of electro-medical devices, focusing on therapeutic areas such as aesthetics, diagnostics, physiotherapy, life sciences among others. JDHL’s facility is FDA / MDSAP compliant, ensuring the highest quality and safety standards, and meeting the regulatory requirements in the US, Australia, Canada, Brazil and Japan. JDHL also has multiple FDA 510(k) approvals in place for its various products.

This acquisition will enhance Syrma SGS’s capabilities and offerings in the electro-medical devices segment and create business synergies across multiple areas. Syrma SGS expects the acquisition to be accretive to its earnings and cash flow.

Sandeep Tandon, Chairman, Syrma SGS said, “We are delighted to welcome JDHL to the Syrma SGS family. This partnership is a strategic fit for us, as it aligns with our vision of foraying into fast growing medical devices segment. JDHL has a proven track record of delivering innovative and high-quality products to its customers, and we look forward to leveraging their design capability will expand Syrma’s ODM skills in the high-growth medical electronics space”.

Satyendra Johari, Chairman, JDHL said, “In the last three decades, JDHL has earned Trust and Recognition of Global leading medical device companies for Design, Engineering and manufacturing services. We are excited to be partnering with Syrma SGS, whose Dynamic leadership and expansive industry insight will broaden the spectrum for us to develop smart and affordable medical electronics for the World. With this partnership, we are poised to be the leading medical electronics company of India”.