Mumbai-based QMS Medical Allied Services (QMS MAS), which is engaged in marketing and distributing a wide range of medical products, aims to redefine how healthcare services are delivered in India. On 5 July 2024, QMS MAS announced the acquisition of a 51 per cent stake in Saarathi Healthcare for Rs45 crore. Through a blend of organic growth and strategic acquisitions, the company is rapidly expanding its footprint. From cutting-edge medical products to comprehensive patient support services, QMS MAS aims to create an ecosystem that seamlessly integrates technology, accessibility, and innovation.
With the recent acquisition of Saarathi Healthcare, the firm is now set to offer an all-encompassing range of products and services, positioning itself as a key player in India’s evolving healthcare solutions landscape. Elaborating on the acquisition, Mahesh Makhija, CMD at QMS MAS, says: “The acquisition of Saarathi is a natural extension of our services and a key part of our expansion strategy. QMS MAS specialises in patient screening, while Saarathi Healthcare focuses on disease management, resulting in better outcomes. This enables us to provide a more comprehensive portfolio to our clients.” He added that the move is expected to boost the company’s revenue and profitability from the beginning of the next fiscal year. Ranjeeta Vinil, Founder and CEO of Saarathi Healthcare, added that the merger would consolidate their strengths in both products and services.
Saarathi Healthcare operates in-patient and disease management, market access, and digital solutions. It has successfully completed over 1,000 projects and formed partnerships with more than 60 enterprise clients. Saarathi’s team of telemedicine and field counsellors has provided patient support services across a variety of disease areas, including oncology, hepatology, chronic kidney disease, rare diseases, child growth, and maternal health.
“The synergy between QMS MAS and Saarathi is unparalleled and is already showing growth,” emphasises Makhija. While QMS MAS is known for its high-quality medical products and devices, Saarathi’s strength lies in its patient-centric programmes. Together, they are building an ecosystem that prioritises both innovation and accessibility in healthcare. This acquisition also brings an established network of multinational and domestic pharmaceutical clients under the QMS umbrella, enhancing its ability to offer comprehensive solutions, including medical products, diagnostic tests, and patient-focused programmes. This unique combination is poised to impact the healthcare industry.
Makhija says: “We are in the final stages of completing the acquisition of Saarathi Healthcare and are working on acquiring the remaining stake. We are currently in the process of raising Rs49 crore through a proposed rights issue, which is pending regulatory approval. We will finalise the rights ratio and pricing upon receiving approval from the Securities and Exchange Board of India (SEBI). The promoters, who hold approximately 74 per cent of the company’s shares, will not participate in the rights issue. The proceeds will be used to finalise the Saarathi acquisition, bringing our stake to 100 per cent, with the remainder allocated to working capital.”
Technology-led growth
A key driver of QMS’s success is its investment in technology implementation in service provision, whether through its proprietary patient support app known as DITI or its customised technology solution used to manage over 3,000 patient screening camps per month. The company has also partnered with Lupin Ltd to operate the HumRahi app, which boasts over 68,000 active users and has garnered widespread recognition. This initiative empowers healthcare professionals with actionable data to improve patient outcomes. QMS is also leveraging data analytics to refine its offerings, using insights from patient interactions and camp results to tailor its services, ensuring improved outcomes and higher client satisfaction. “In today’s healthcare landscape, data is as important as the products and services we offer,” says Makhija.
Incorporated in 2017, QMS MAS initially focused on marketing and distributing medical products under the brand ‘Q Devices’. In its early years, the company distributed products from renowned brands like 3M, Heine, and Rossmax. It specialises in medical devices such as blood pressure monitors, glucose monitoring kits, dental products, personal protection kits (including PPE), infection prevention tools, stethoscopes, and oxygen concentrators. The company now operates across three business verticals, offering more than 600 SKUs to over 130 customers. It also runs an e-commerce platform, qmsmeds.com, which allows medical equipment dealers, distributors, surgeons, and clinicians to source supplies from its surgical store.
Tanay Surkund, Head of Special Projects at QMS MAS, says: “The Indian market for medical equipment is expected to reach $50 billion by 2025. India currently has a 75-80 per cent dependency on medical device imports. Key manufacturing hubs include Gujarat, Maharashtra, Karnataka, Haryana, Andhra Pradesh, Telangana, and Tamil Nadu. India is the fourth-largest Asian market for medical devices after Japan, China, and South Korea, and ranks among the top 20 globally.”
“Under Prime Minister Narendra Modi, the government is promoting the indigenous manufacturing of high-tech medical devices, production-linked incentive schemes (PLIs), and developing new medical device parks to stimulate the domestic market. We are executing our growth strategy to create exponential value for stakeholders while consistently delivering high-quality products,” adds Surkund.
QMS MAS operates in both the medical and healthcare sectors. Its offerings span traditional B2B sales of medical devices, innovative point-of-care solutions under the Q Devices brand, and a growing hospital segment. On the services front, QMS leads health camps focused on diabetes, cardiology, and bone health, alongside Saarathi’s patient support programmes, which are expected to contribute to its annual service revenue. It also provides customised solutions to assist top pharmaceutical companies in optimising patient and doctor engagement programmes. “Patient Service Programmes are now at the forefront of the doctor engagement ecosystem,” says Makhija.
The acquisition of Saarathi is a natural extension of our services and a key part of our expansion strategy
In April 2023, the company entered the direct-to-consumer market, launching a range of point-of-care products under the Q Devices brand. It also appointed legendary cricketer Kapil Dev as its brand ambassador. Dr Guddi Makhija, Co-Founder of QMS MAS, commented: “Reliability, service, quality assurance, and innovation are core values at QMS MAS, and Kapil Dev embodies these virtues. He was our first choice as a brand ambassador. We feel a deep responsibility towards our customers and their well-being, and we wanted an icon with whom everyone could relate.”
According to the IQVIA Global Use of Medicines 2024 report, India is expected to see a 2.6 per cent compound annual growth rate (CAGR) in per capita medicine use through 2028. India is also projected to rank eleventh in invoice spending by 2028. China is expected to lead the region in per capita growth, with a 3.8 per cent CAGR over the same period, ranking second globally in medicine spending by 2028.
Independent SEBI-registered analyst Rahul Sharma at Equity99 Advisors says: “The government has already initiated various measures to strengthen the medical devices sector, focusing on research and development (R&D) and allowing 100 per cent FDI in medical devices to boost the market. FDI inflows in the medical and surgical appliances sector stood at $2.35 billion between April 2000 and December 2021. Diagnostic imaging is expected to expand at a CAGR of 13.5 per cent between 2020 and 2025.”
Growing from Strength to Strength
For Makhija, QMS MAS’s recent growth is a milestone. After working with several multinational firms, Makhija ventured into the distribution of medical devices by founding Queen’s Marketing Services to distribute 3M medical products. The company later diversified into promotional materials for pharmaceutical firms, distributing items such as microporous tapes, sanitisers, and diagnostic kits. By 2011, QMS had achieved a turnover of Rs25 crore. In 2017, it was rebranded as QMS MAS. In September 2022, QMS entered the capital market, listing on NSE Emerge. The company’s initial public offering included a fresh issue of 28 lakh equity shares and an OFS of 19 lakh equity shares at Rs121 per share, aggregating Rs56.87 crore.
For Q1FY2025, QMS posted an operating revenue of Rs30.37 crore, with a net profit of Rs2.40 crore. In September 2024, operating revenue reached Rs32.74 crore, a 14.3 per cent increase from Rs28.64 crore in September 2023. Quarterly net profit stood at Rs2.61 crore in September 2024, up 2.02 per cent from Rs2.56 crore in September 2023. EBITDA for September 2024 was Rs5.42 crore, up 8.18 per cent from Rs5.01 crore in September 2023.
Looking to the future, Makhija asserts: “We aspire to be a Rs500 crore company soon, with net profit margins in the region of 8-12 per cent per annum. Our growth strategy is based on three pillars: expanding services for pharmaceutical clients with high-margin solutions, strengthening our marketing outreach to hospitals to establish ourselves as a preferred supplier, and expanding into government healthcare by participating in regulated patient support programmes and health awareness camps.”
Makhija aptly concludes: “Healthcare is not just about products or services; it is about making a meaningful difference in people’s lives. That is what drives us every day.” With a market capitalisation of Rs200 crore, QMS’s stock price presently ranges between Rs111 and Rs120, with a 52-week low of Rs90.2 and a high of Rs189.