India's Leading Conglomerate Makes Inroads into Medical Devices

Recently, Tata Elxsi, a subsidiary of India's largest conglomerate Tata Group, announced the launch of a Global Medical Device Technology Hub in Pune, India, with a core focus on molecular imaging technologies. It has been revealed that Tata Elxsi will collaborate with Bayer to develop advanced radiology equipment and technologies, enabling early and precise diagnosis and treatment of critical diseases.

As India's top conglomerate, Tata Group has a presence across healthcare, steel, automotive, power, and other sectors. In 2024, the group posted revenue exceeding USD 168 billion and a market capitalization of USD 365 billion, accounting for approximately 6% of India's GDP.

01 Partnering with Bayer

Tata Elxsi will establish the "Bayer Radiology Development Center" in India, integrating capabilities in equipment design, development, and validation to fast-track new technologies to market—all while meeting the most stringent regulatory compliance standards.

Sreevatsa Sahasranaman, Senior Vice President and Head of the Healthcare & Life Sciences Division at Tata Elxsi, noted: "This center is more than an engineering facility; it merges Bayer's radiology vision with Tata Elxsi's expertise in design, AI/ML, and regulatory compliance. Our teams will collaborate to translate this vision into devices that solve real-world diagnostic challenges, ensuring safety, compliance, and global scalability."

Tata Group's operations span telecommunications and IT, engineering, materials, services, energy, consumer products, and chemicals, making it integral to India's functioning. 67% of its equity is held by charitable trusts, with profits directed toward healthcare, education, and other initiatives. The group also operates multiple hospitals and manages the Tata Capital Healthcare Fund, a dedicated healthcare investment vehicle.

Bayer's diagnostic imaging portfolio now covers full-scenario applications including CT, MRI, and PET-CT, forming a complete solution ecosystem from contrast agents and injection devices to informatics management. Leveraging Tata Group's robust ecosystem in India and Tata Elxsi's healthcare expertise, the partnership will strengthen Bayer's ability to deliver radiology solutions in regions such as the U.S. and EU.

Dr. Konstanze Diefenbach, Head of Radiology R&D at Bayer, stated: "Bayer is committed to innovative products and high-quality services in diagnostic imaging. Equipment innovation is critical to enhancing precision and safety in patient care. This new center grants us direct access to Tata Elxsi's specialized engineering capabilities, accelerating our advanced radiology equipment pipeline while upholding the reliability healthcare providers expect from Bayer."

Headquartered in Bengaluru, Tata Elxsi operates in healthcare, automotive, broadcasting, and consumer electronics for communications. Its healthcare and life sciences arm is ISO 13485 certified and partners with medical device and pharmaceutical OEMs, as well as tech firms. Through its service and solution portfolio, Tata Elxsi adds value across the entire product development lifecycle, and is recognized as a leader in technical consulting, new product design, development, verification & validation, and regulatory compliance services.

02 Tata Group Accelerates Its Push into Medical Devices

India's medical device market is growing rapidly, with an estimated size of USD 11 billion in 2020 and projections to reach USD 50 billion by 2025. Currently, India is highly import-dependent for medical devices—approximately 75%-80% are sourced from abroad, with the U.S., Germany, and China as key suppliers. Drivers of this growth include its 1.4 billion population, a rising aging demographic, expanding middle-class incomes, and strong policy support via initiatives like "Make in India."

In response, Tata Group has formulated a 2025 strategy for the medical device sector, targeting both domestic and global markets. As noted on its official website, the medical device industry has undergone significant transformation in recent years, with technological adoption accelerating at an unprecedented pace. From digitally connected wearables to AI-driven diagnostic tools, today's healthcare ecosystem demands products that are both clinically effective and user-friendly.

The company identifies three key drivers shaping medical device development:

1. Patient-centric design: Patients now expect medical products to deliver intuitive, consumer-grade experiences, making usability engineering a core part of product development. Firms that integrate user insights early in design significantly improve patient adherence and satisfaction.

2. Complex regulatory landscapes: Stringent oversight by global regulatory bodies underscores the importance of compliance consulting. As markets expand—particularly in the U.S., EU, and Asia—device designers must navigate diverse regulatory requirements while maintaining consistent quality standards.

3. Digital transformation: The convergence of healthcare and digital technology continues. Cloud-based platforms, AI-driven analytics, and telecare solutions are compelling design teams to address new data security and interoperability challenges.

The company also emphasizes forging strategic partnerships. Whether for compliance consulting or R&D collaboration, such partnerships accelerate device development. Collaborating with external experts—from CROs to university labs—broadens expertise and shortens innovation cycles.

Beyond Bayer, Tata Group has recently partnered with both domestic and overseas healthcare entities. Last year, it teamed up with Skanray, a global leader in medical imaging R&D and manufacturing, as a strategic partner for developing core technologies and software platforms for advanced surgical imaging. This collaboration aims to leverage cutting-edge technology modules to enhance predictability, accuracy, and consistency in diagnosis and treatment. Tata Elxsi will lead a software platform-driven diagnostic approach, supporting all imaging, critical care, and surgical systems in Skanray's portfolio to ensure interoperability, compatibility, and multimodal functionality.

In May, Tata Elxsi formed a strategic partnership with the European College of Sports and Exercise Physicians (ECOSEP) to transform sports and exercise medicine. The collaboration will focus on applying AI in advanced diagnostic tools, personalized treatment plans, predictive analytics for injury prevention, and real-time monitoring of athletes' physical status.

The company notes that in the coming years, medical device engineering will delve deeper into digital and data-driven solutions. Devices will increasingly use AI algorithms for diagnosis and real-time monitoring, with seamless integration into telemedicine platforms. These advancements demand greater attention to regulatory and usability considerations. As healthcare evolves, device design firms must adapt strategies and capabilities to navigate a landscape shaped by strict regulations, digital convergence, and rising patient expectations. By prioritizing best practices—including usability research, regulatory foresight, and cross-functional collaboration—companies can develop standout devices in both mature and emerging markets.

Previously, Bayer's local R&D in India focused on agriculture and pharmaceuticals. In recent years, it has expanded its patent portfolio in India, particularly in agrochemicals and low-cost pharmaceuticals, to align with local market needs. In diagnostic imaging, Bayer brings a century of expertise, offering an advanced portfolio including contrast agents for CT, X-ray, and MRI; devices for precise contrast agent management; informatics solutions; and medical imaging platforms with AI and other applications.