QMS Medical Allied Services is transforming India’s medical device distribution, addressing key industry challenges with innovative, value-added solutions. Led by founder and Managing Director Mahesh Makhija, the company provides streamlined market entry for foreign medical brands and growth opportunities for domestic players, bridging gaps in a fragmented sector where 80% of distribution is handled by small distributors.
Key Initiatives by QMS
- Demand Creation: Engaging with stakeholders at multiple levels to actively generate demand for healthcare products.
- Data-Driven Insights: Using real-time analytics to optimize supply chains and market strategies.
- Digital Innovation: Supporting brand growth through QMS’s digital assets alongside major e-commerce platforms.
With India’s healthcare sector expected to reach $350 billion by 2030, QMS offers a seamless entry strategy for foreign medical brands, handling regulatory compliance, demand creation, and distribution. Founded in 1994, Mahesh Makhija has been instrumental in QMS’s growth, transforming it from a sole proprietorship into a publicly listed powerhouse and providing visionary leadership in an evolving industry.
In an interview with Business Upturn, founder Mahesh Makhija shared insights into QMS Medical’s innovative approach to bridging gaps in India’s healthcare distribution landscape –
QMS Medical has been at the forefront of transforming India’s medical device distribution. What were some of the early challenges you faced in establishing a foothold in this fragmented market, and how did you overcome them?
Mahesh Makhija: QMS MAS from it’s very inception has chosen not to engage in the traditional distribution channels available to us. Compared to the mass of local and regional distributors who engage merely in order fulfilment, we have engaged in meaningful VALUE BASED DISTRIBUTION amongst institutional customers ranging from pharmaceutical to insurance.
This unique approach has allowed us to foster deep relationships with our principal manufacturers as well as our clients which has borne fruit even in light of the fragmented market in which we operate.
In a highly competitive industry like healthcare, where technology and regulation are constantly evolving, how do you ensure that QMS stays ahead in terms of innovation and compliance?
Mahesh Makhija: QMS MAS has always been at the forefront of introducing new healthcare technology to India, specifically in the diagnostic and screening space. We are associated with leading companies worldwide and in many cases are the sole importers and distributors for specific registered technologies. This aspect is one of the components of our Value Based Distribution Model.
Unlike other companies, we welcome more regulatory oversight in the industry as it allows companies like us to thrive on our existing ethical and compliant practices while simultaneously weeding out bad players from the ecosystem.
You’ve successfully transitioned QMS from a sole proprietorship to a publicly listed company. What were the key turning points that helped you scale the business, and what would you attribute this growth to?
Mahesh Makhija: The company has shown steady growth through evolution and “response to stimuli” as one would put it. We have not stood stagnant as the market changed, rather modified our vision, services and operations to respond and in most cases preempt any changes that have occured in this constantly evolving and growing eco-system.
In the last 7 years itself, there have been regulations that have adversely affected companies operating in this business segment, such as the 194 R ruling that restricted purchase and sale of high end medical devices by some of our pharma clients as well as the implementation of the UCPMP(Uniform Code of Pharmaceutical Marketing Practices) by the Govt of India. While other players seemed to reel in pain due to these rulings, QMS MAS pivoted and initiated a high growth revenue line in our patient service programs that include the support programs and the screening camps that have now become our flagship offering.
India’s healthcare sector is expected to reach $350 billion by 2030. What role do you see QMS playing in shaping this growth, particularly in terms of partnerships with foreign medical device companies?
Mahesh Makhija: QMS MAS currently covers every model of healthcare distribution be it trade, institutional, direct to doctor, hospital and online, at a national level. We also have teams across the country who are engaged in conducting screening camps for early detection of chronic diseases using very high quality foreign made diagnostic devices.
There are many reputed foreign medical device companies who have traditionally avoided entering the Indian market due to the fragmented distribution networks and the lack of transparency in the conduct of business. QMS MAS is now in the position to allay these concerns and partner with them in a meaningful manner and introduce their products to multiple stakeholders through a wide variety of channels.
With over 35 years of experience in the healthcare sector, how has the landscape changed in terms of market expectations and operational challenges? How has QMS adapted to these shifts?
Mahesh Makhija: The current healthcare market has changed dramatically in the last 10 years, be it due to the expansion of the healthcare sector across all its verticals may it be pharmaceutical or healthcare delivery OR the COVID pandemic which brought a glaring focus on the gaps present in the current healthcare system in the country.
There are multiple changes that have occurred due to the same including a demand for high quality products at competitive pricing, a larger focus on Made-In-India products, an increase in costs when it comes to logistics especially during the lockdown in 2020 as well as an increased focus on preventative healthcare and patient welfare.
QMS MAS through it’s year of experience has adapted it’s operations as well as it’s offerings to be capable of addressing these challenges while simultaneously providing value to every stakeholder in the value chain. Our company is structured in a manner that there are divisions that specifically cater to product distribution whether is be wholesale, institutional, direct to consumer, direct to practitioner or e-commerce, as well as a service vertical whose main aim is to provide services encouraging preventative health screening as well as promotion of patient welfare.
In fact, to deepen our presence in the patient service segment of the industry, we have acquired a 51% stake in Saarathi Healthcare as of July 2024, which gives us a wider base of operations and opportunity in the provision of patient centric programs.
QMS emphasizes data-driven insights and digital innovation in its services. Can you share some examples of how these technologies have positively impacted your clients’ market strategies and operational efficiency?
Mahesh Makhija: QMS MAS has always been a highly tech forward company and we have always utilized technology to ensure that our operations are conducted efficiently and transparently for our clients and our partners.
To give you an example of our success in this field, we have completely automated our service vertical through our own custom-made technology framework that allows our clients to utilize our services without any manual intervention. Representatives of our clients can book a field officer for a screening camp anywhere in the country based on the availability of latter in that specific area using our very own portal that takes out the manual component entirely.
Our system also ensures that our field officers are able to capture important data regarding the provision of said programs, which can then be reported back to our clients for them to postulate their own insights. All the data is stored securely on AWS encrypted cloud servers with very limited access, ensuring compliance to all digital and health information regulations.
We also utilise the IOT technology in our screening devices that allow for a smooth transition of data from the device onto a mobile platform for continuous health tracking and monitoring, allowing for a more robust lifestyle maintenance option.
Looking ahead, what are the major growth opportunities and potential risks for QMS, both in terms of expanding domestically and building stronger ties with international markets?
Mahesh Makhija: The healthcare sector in India is on the ascendancy and QMS MAS is going to ride along with it-primarily due to our high growth areas- the institutional value-based distribution business as well as our very high growth patient services vertical.
We see immense potential in both these areas as with the rise of an educated middle class across the country, there will be a paradigm shift from treatment after diagnosis to intervention post screening. Our patient service programs stand to provide consumers the opportunity to better their outcomes with early intervention and support during their therapy.
The distribution business however will grow exponentially as there is a boost in the hospital and clinics infrastructure being established in India, particularly in the Tier 2 and Tier 3 cities. Both public and private hospitals are being constructed across the country at a fast pace, each with their own unique requirements in terms of devices and equipment which QMS MAS will stand ready with our distribution pathways to cater to.
