The manufacturing unit of a medical equipment firm,which exports to countries like Philippines and South Africa,in Panchkula was gutted in a fire early on Thursday morning. The unit belongs to the Recorders and Medicare Systems Private Ltd,which exports medical equipment like Electrocardiogram (ECG) and Electromyograms ( EMG). The loss to property,including the intellectual property (IP) content of the company,is estimated at
Rs 120 crore.
Even as police are investigating the cause of fire,preliminary investigations point to a short-circuit. The fire,apart from damaging equipment,has destroyed the firms Research and Development (R&D) facility that houses its IP content with the main server containing the content completely gutted,the firms top officials said. They had been informed of the fire at the unit housed in the first phase of industrial area,following which they reached the spot. It was brought under control late in afternoon by fire tenders from Panchkula and Haryana. Over 30 vehicles of the fire service of the UT and the Panchkula were pressed into service.
Company officials said that they lost the IP content valued at nearly Rs 100 crore. Following the fire,the company has decided to relocate its staff to its manufacturing unit at Chandigarh,which has been out of use. Officials,however,said that over 200 employees will be paid their salary till manufacturing starts in Chandigarh.
Top company officials said that orders to some of the distributors as well as the multi-speciality hospitals like Apollo and Fortis will get delayed due to the fire. The company has been a pioneer in the manufacturing of EMG equipment and has a near 70 per cent market share in the electroencephalogram (EEG) business in India. The EEG business is pegged at over Rs 10 crore in India,a year.
Company Director,J K Grover,said that the major loss was to the IP content. The IP content has been for in-house use only, he added. Grover claimed that the major portion of the IP content that was lost in the fire had been reflected in the company balance sheet. He said that it will take nearly a month for production to start at the Chandigarh plant.