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In 2022, the medical devices and equipment industry was included in the National Industrial Policy 2022 and now the manufacturers are looking into the budget for FY24 to ensure well-organised growth of the sector, said Moushumi Islam, Managing Director of Promixco Ltd, in an exclusive interview with The Business Post’s Kamrul Hasan.
Please tell me how Promixco turned into a medical device manufacturing company?
It was 2000 when I decided to start up business, a purely import-based business. I went into business by importing machinery and continued it for almost six years. Later, I started thinking and working differently since 2007.
In the years from 2007 to 2009, I started dismantling machines imported from China and reassembling them to validate if I can at least assemble them in the country. That eventually came positive for me and I started manufacturing and assembling machines.
The first machine we made was Nebulizer, a small device that needs nearly 70-80 components to complete. The other machine we made at the same time was weight machine.
In the years from 2009 to 2013, I got enough confidence in making machinery and so I started carrying out market research and searched for a large-scale investment in manufacturing machines. In 2014, I got a loan from IFIC Bank to set up a factory.
Now I am focusing on establishing a well-organised R&D, manpower generating activities and assisting government authorities concerned in policy development in favour of the newly recognised industry that has potential to be an export-oriented sector in near future.
Why did you choose medical devices as your business interest?
Medical devices seem to be an interesting, profit generating business that aims helping the people save their lives. We keep it mind that in the treatment procedure of a patient started with disease investigation that is done by devices. And proper detection is a must for proper treatment.
As non-communicable diseases are on the rise across the country, keeping some essential machines like blood pressure measuring machine, blood sugar detecting machines or thermometer would be a key to ensuring better health.
So, we came up with the idea of manufacturing machines locally to provide them at cheaper rates.
Besides, Bangladesh will be the ninth largest consumer market by 2031 and so the market will also expand. And grasping the opportunities would be the best for the people and also for the businessmen of the country. And of course, someone needs to be crazy behind the job to include such a non-traditional product manufacturing industry in a recognised sector.
How many products are you producing right now?
Starting with Nebulizer in 2007, Promixco is now producing 250 medical devices in the country. Among them, it is developing 25 medical devices, 80-90 medical furniture and 60-70 MSR products.
Would you share your efforts to include medical devices as a new industry in the policy?
As medical devices are non-traditional devices, I wanted to avail domestic benefits that are provided by the government for the sustainability of the industry. So, I wrote to the National Board of Revenue (NBR) and Bangladesh Investment Development Authority (BIDA).
As the industry is not being included in the national industry policy, it could not be possible for them to provide any benefit to the manufacturers. Although being disappointed, I started to find out a new way to go and later on officials from BIDA helped me understand the issue and so, I communicated with the Ministry of Commerce.
To my surprise, the ministry showed much commitment for a newly developed sector in the country and after several meetings, the ministry included it in the National Industrial Policy 2022 issued in September last year.
What next for the newly recognised industry?
It is a great pleasure to see the industry finally is included into the industrial policy. But it requires a long way to go to make the sector self-dependent in a precise sustainable way. While Promixco was advocating for the sector to be included in the policy it has mentioned several companies, may be small in production, but if they get the chances, they might turn into a bigger one.
What are needed at this current moment are opportunities and support and most of the government willing.
The recognition to the policy is the first step but our attempts for the better growth of the sector in the country will get true momentum if it gets government support through budget and NBR.
Right now we are seeking a new, modified duty structure and also duty subsidy for the industry. We are also seeking the benefit of manufacturing non-traditional product incentives for rapid growth of the industry.
Besides, we want a government initiative for the quality products that we are making locally, for example imposing extra duty on the imported products.
What is the future plan of Promixco?
I always emphasise on research, research on market demand and forming R&D for the industry.
Recently, we have collaborated with AMTZ of India for creating more skilled, innovative manpower for the sector. We also try to collaborate with the academia concerned so that education could be more impactful for the industry.
We all are doing as part of an attempt to have manpower supply to the industry of our own so that we can produce more complex medical devices of our own and supply them to the market at possible cheaper prices.
What are the problems the industry is facing right now?
You can manage new funds (finance) more easily than ever as the world has already recognised Bangladesh as their new investment destination. What lacks is a well-planned proposal and negotiation. As I said manpower is the biggest concern. We have an available and cheaper labour market, but they are not skilled, not even semi-skilled.
Education is another concern. We need to build an education system so that we can get fresh graduates who know about the industry. And finally, the government needs to be more sensitive towards the sector.
What is the future of medical device market in Bangladesh?
Finding the data in this regard is really difficult. But what I can say that in urban areas, as the NCDs are increasing, we have seen that some 15-20 per cent of the families having such patients have already bought some essential machines like blood pressure measuring machine, blood sugar detecting machines or thermometer. And many are asking about the prices.
Hence, the future of the industry in the country is very bright. The industry can serve in three ways.
Firstly, being self-dependent in medical device manufacturing, it will save our foreign currency and the time of healthcare providers.
Secondly, ensuring quicker service responds. When you are importing general and complex machinery, you will have to wait for the mother company to repair it. But if we can source it from our local market, maintenance services could be ensured within 24-hour time. It will ensure service guarantee of the devices and also less interruption in the healthcare services.
And finally, as our production cost could be less than that demanded by global companies, we can open up the international market, especially in lower or middle income countries, which means a new industry for export from the country, a new source of foreign currency income.
We believe if the industry gets government support, it will grow like export-oriented industry such as garments and pharmaceuticals in near future.
