Mar 06

Q & A with Netech President, Mohan Das, PhD

For more than 19 years, Hicksville, NY-based Netech Corporation has been designing, manufacturing and distributing high quality, eliable test instruments for use in medical and industrial applications.

Since emigrating from India in 1980, it seemed that Netech founder and president Mohan Das, PhD, was destined for such a career path. As a former biomedical specialist for a Long Island hospital, he maintained existing and new medical equipment and assessed new technologies being introduced to the hospital. But he soon realized the growing need for more specialized instrumentation that was specifically designed and suited for maintaining a wide range of equipment and technologies. To fill the gap, he took it upon himself to build several small testing devices to aid in the calibration and testing process. The first device he designed was a plug-in adapter for use with a multi-meter to make the required periodic measurement of electrical risk current of all patient connected medical equipment. He also worked with a group of orthopedic surgeons to develop a pressure monitor to measure the build up of hip joint fluid in arthritic patients. In 1987, he left his position at the hospital and founded Netech Corp. The first Netech products were a pressure adapter, patient simulator and pressure meter. Mohan holds patents for several devices, including a telephonic transmitter and receiver for ECG signals.

An ISO 9001-2000 certified company, Netech has built on its longstanding commitment to quality and core values. Along with its ISO certification, the company has also received CE marking on most products – two key considerations for international customers. While the U.S. comprises the largest share of the worldwide biomedical test instrument market and has the most stringent regulations on testing, many countries are currently developing and expanding their own regulations. The international market will grow and thrive over the next several years. Netech is currently aligned with distributors in several countries and is working to expand its international base.

How has the market place changed over the past 5 Years?

Netech is focused on a very small segment of the marketplace, one that deals primarily with service test equipment for medical instrumentation, as well as the low-end industrial sector. In the past there were approximately five companies competing for market share in this small business environment. Over the last several years the number of companies competing in this sector has shrunk through the acquisition process. Currently only a couple of companies are in reality competing. Client options have dwindled to one goliath and several small Davids. It does not require a MBA to understand what the lack of competition can do to both quality and cost. Competition is also the father of innovation.

Another change we have seen as a manufacturer of test equipment for medical devices is a shift of focus in the medical community from only basic safety testing to device function verification testing. The hand held pulse oximeter may be safe but is it performing within its own specifications.

How has your business been effected by these changes?

We actually welcomed the change; in fact we just came off one of our most profitable years. Our shrinking competition has simplified the number of choices available to our consumers. We are confident that the majority of our customers who make the purchase decision are learned professionals. They are very capable of evaluating the options available to them and selecting what best suits both their needs and their pocket book.

The challenge, as a small company, is to focus on the needs of our customers to verify operation of emerging new technologies. We plan to meet this challenge through greater focus on research and development.

Do you expect future growth in this nitch market area?

With healthcare still a significant portion of the gross national product; healthcare instrumentation will also continue to be on the cutting edge of technology. As new innovative products come to the market place, companies such as Netech will be challenged to develop test equipment to verify device function and validity.

Those companies that can meet that challenge will thrive in the coming years. As a small company we feel very comfortable in this arena because we have had to design almost all of our existing product line.

Our location also puts us at an advantage. We are located in central Long Island where we are exposed to a large number of the leading teaching hospitals in the country. We are in the center of technology with many expert resources to interface with.

In which services does Netech Corp excel in compared to its competitors?

Netech has recently committed itself to research and development and hopes over the next six months to introduce new products to its current line. This is the exciting part of being able to manage our own destiny. We feel like proud parents who have wrapped the children’s Christmas presents under the tree. We are anxious to see the products unwrapped.

What do you think consumers of your type of products are looking for?

We feel that our consumers are looking for test equipment that is traceable, reliable and at a reasonable price. Most of our product line is used to verify correct operation of patient care equipment. Equipment that anyone of us could on any given day be dependent on in an emergency situation. We have made a special commitment to quality that began with establishing ourselves as an ISO 9001-2000 certified company. Because of our small size we are able to closely monitor all aspects of production and quality control.

How has the emergence of the E-commerce affected your business?

The Internet is changing how companies function. Small companies can now represent themselves in the world market place. The Internet is an even playing field for companies of all size. The networked computer is now almost a standard desk accessory in any business environment as much as the phone and stapler. It is also fast becoming the first source for information.

Netech has made a strong commitment to strengthen its image in this medium. We have seen a steady growth in overseas sales over the past several years due to our presence on the Web and have every expectation that it will continue to grow.