Sysmex’s Strategic Expansion: A Boost for India’s IVD Ambitions

April 28, 2025: Sysmex corporation, one of the leaders in the IVD space, has officially commenced full scale operations at its new manufacturing facility in Gujarat, India. This move symbolizes a strategic leap forward for both Sysmex’s global growth ambitions and India’s aspiration to become an IVD manufacturing powerhouse.

Overview of the manufacturing base:

How is Sysmex making “Make in India” Real?

The new plant, located at Sanand II Industrial Estate, Gujarat, covers approximately 18,100 square meters, featuring 10,600 square meters of state of the art production space. With an investment of about 3 billion yen, this facility now stands as Sysmex’s largest production base outside Japan and second largest instrument manufacturing site globally.

Sysmex’s facility produces diagnostic reagents and the XQ-320 system, a three part differential hematology analyzer specifically designed for small and medium sized healthcare settings. Crucially, the device meets India’s “Make in India” policy requirements by employing local resources and materials to qualify for public procurement tenders, thereby directly supporting India’s healthcare localization goals.

Why is tech transfer to talent development critical?

Sysmex emphasizes that the new manufacturing base in India isn’t simply an exercise in relocating production lines but represents a deep rooted transfer of Japanese manufacturing principles. As per company executives, establishing robust local manufacturing demands “a new approach” involving hands on training and cultural integration, fostering a skilled workforce aligned with Sysmex’s global quality benchmarks.

According to Sysmex’s representative involved in the technology transfer stated that: “We believe it’s important not only to simply transplant Japanese facilities to maintain quality standards but also to give the local people and understanding of our manufacturing philosophy and culture”

This strategic human capital development underscores Sysmex’s broader mission of delivering quality diagnostics globally while simultaneously nurturing local manufacturing talent.

What are the economic and industrial implications?

Sysmex’s Gujarat plant has significant enhanced production capabilities, quadrupling the output of diagnostic reagents compared to its older Himachal Pradesh facility. This expansion translates into several key benefits for India’s diagnostics ecosystem:

• Enhanced supply chain resilience: Localized production reduces dependence on imports, stabilizing prices and ensuring timely product availability.
• Price competitiveness: Local manufacturing substantially cuts costs, allowing Sysmex to compete aggressively in India’s price sensitive tier II and tier III markets.
• Broader access to quality diagnostics: With a product optimized for local needs, Sysmex can deliver high quality automated diagnostics to underserved regions, significantly improving healthcare accessibility.
• Sustainable practices: The plant incorporates a zero liquid discharge (ZLD) system, emphasizing environmental stewardship in line with global ESG targets, setting a sustainability benchmark within India’s healthcare manufacturing sector.
• Highlighting the environmental commitment, Sysmex notes: “The implementation of ZLD systems reflects Sysmex’s commitment towards environmental sustainability and showcases leadership in adopting global ESG standards.”

Government Endorsement: Gujarat’s Support for Sysmex’s Expansion

Sysmex’s expansion aligns with a broader strategic shift in the global diagnostics industry, towards localization, sustainability, and proximity to demand centers in emerging markets. In an official statement, Sysmex emphasized that the Gujarat facility is not only its largest outside Japan but is also designed to serve as a supply hub for neighboring countries.

Reflecting the strategic value of this investment, the government of Gujarat officially recognized the project during the Vibrant Gujarat Global Summit 2024, stating: “Sysmex India Pvt Ltd, in collaboration with Japan invested rupees 210 crore in medical device production, providing employment to 70 people”. The endorsement highlights Gujarat’s growing role as a preferred destination for MedTech innovation and advanced manufacturing and underscores India’s evolving position as a credible production base in the global IVD value chain.

What strategic advantage does this offer Sysmex?

For Sysmex, this strategic investment directly enhances market penetration within India’s government and mid tier healthcare sectors. It opens avenues for regional exports, positioning India as a strategic production and supply base. Further scalability is built into the facility’s design, enabling it to accommodate more sophisticated diagnostics, such as five part hematology analyzers and molecular diagnostics.

What challenges lie ahead?

Despite these advantages, Sysmex faces intensified competition from domestic manufacturers. Companies like CPC Diagnostics and Bhat Biotech are entering the hematology segment aggressively in the IVD industry, necessitating sustained quality assurance, strategic pricing and strong local relationships.

However, with an established manufacturing footprint, government aligned procurement and deep integration with India’s healthcare vision, Sysmex appears poised to meet these challenges effectively.

Conclusion: Moving beyond production towards partnership?

Sysmex’s Gujarat plant embodies more than increased production, it symbolizes the convergence of global technology, local manufacturing and a shared commitment to assessable healthcare. By anchoring production within India, Sysmex strengthens its global presence and simultaneously accelerates India’s evolution into an IVD innovation hub.

As India continues to transition from consumption to production driven healthcare markets, Sysmex’s strategic expansion represents both a validation and an enabler of India’s growing capabilities in healthcare innovation and manufacturing excellence.