Warburg Pincus, a leading global investor, has acquired a stake in leading manufacturer of ophthalmic equipment and devices Appasamy Associates, stated a company release.
Based in Chennai, Appasamy is the largest Indian manufacturer of ophthalmic equipment and intraocular lenses (IOLs). The Company is present across the entire value chain of ophthalmic devices – diagnostic, surgical equipment, and IOLs, it stated.
The US based private equity major Warburg Pincus is in advanced stages of discussions to acquire Appasamy Associates, signed an exclusivity agreement with Appasamy and the due diligence has been started, ET first reported in July last year.
Promoters of Appasamy are expecting a valuation of Rs3000-3200 crore. Warburg plans to acquire about 60-70% stake and the business to be run by the current management, ET had reported.
Appasamy will continue to be led by the recently appointed CEO, Senthil Kumar who will drive the business going forward with the support of the promoter family and in partnership with Warburg Pincus, added the press release. Company is the exclusive distributor for Canon’s medical equipment in India.
Appasamy Associates had begun operations in 1978 by introducing India’s first low cost cryo surgical equipment for ophthalmology for Rs.1800, whereas an equivalent imported unit costs Rs.20,000.
India is one of the largest eye care markets by volume, where 6.5 million plus people undergo cataract surgery every year. Recently, the Centre has proposed to clear the backlog of at least 10 million cataract surgeries -pending since Covid outbreak. It plans to increase the number of surgeries to a total of 27 million surgeries in the next three years.
Among the Indian brands, Appasamy is the market leader with about 75% market share. Other leading Indian brands are Aurolab and Iocare.
“It is a matter of great pride for us to witness the evolution of Appasamy, from being just an idea of PSN Appasamy, the founder, to becoming a leading player in the Indian and global ophthalmic space, with remarkable growth over the last 40+ years,” said Arvind Kasthuri, from Appasamy’s promoter family.
“The promoters and the management team have a distinguished history of successfully running businesses in the ophthalmic industry. Senthil brings great strengths in building and scaling teams and products across geographies, and we are excited to collaborate with him in Appasamy’s next phase of growth,” said Narendra Ostawal, Head of India Private Equity, Warburg Pincus.
Nuvama Investment Banking acted as the exclusive financial advisor to this transaction.
Warburg Pincus’ investments in the Indian healthcare sector include Meril Life Sciences, MedPlus, Laurus Labs, and Metropolis Healthcare.
