Birla Fertility & IVF has completed the acquisition of BabyScience IVF Clinics, founder Avanti Birla told Mint. The acquisition, its second in three months, will strengthen the company’s presence in the western part of the country and take its total number of clinics across India to 50, she said. It will continue to look for opportunities in west and northeast India, and overseas as it aims for 100 clinics by FY28, Birla added. The company is looking to go global “maybe not this year but the next”, she said.
Birla did not disclose the size of the deal. The company will initially take a co-branded approach, with BabyScience’s current employees continuing to oversee operations, she said.
BabyScience IVF Clinics is based in Bengaluru and mainly operates in cities in south and west India such as Mumbai, Bengaluru and Chennai. It has 12 clinics across Maharashtra, Karnataka, Tamil Nadu, Delhi, Haryana. The acquisition marks Birla Fertility & IVF’s entry into three new states.
Infertility on the rise
India’s IVF industry is projected to grow rapidly in the coming years, according to analysts, driven by a surge in medical tourism and an increase in health conditions contributing to infertility. An estimated 25-30 million couples in India are currently grappling with infertility issues, and companies are ramping up their plans to tap this opportunity.
Ernst & Young expects India’s IVF market to grow to $1.45 billion by 2027 from $793 million in 2020 at a compound annual growth rate (CAGR) of 15-20%. Custom Market Insights estimates the industry will surpass $5.05 billion by 2033 at a CAGR of 16.23%.
In May, Birla Fertility & IVF acquired an 86% stake in ARMC IVF, a chain of fertility centres based in Kerala. The deal, estimated by industry sources to be worth about ₹100 crore, added seven clinics to Birla Fertility’s portfolio.
₹500-crore investment
These acquisitions, Birla said, will help the company achieve its goal of 100 clinics by FY28 by investmenting more than ₹500 crore. It plans to achieve this goal through a mix of organic expansion, inorganic growth, and partnerships.
“Whenever we start looking internationally, it’ll possibly be in Southeast Asia and the Middle East. This can be done in a host of ways: organic, inorganic, and partnerships. But India remains the focus for the next 15 months,” she added.
“With this acquisition, Birla Fertility & IVF has a combined experience of over 120,000 IVF cycles and has treated more than 230,000 patients,” Birla Fertility said in a statement.
Source: Mint