Private equity firm Warburg Pincus has acquired a stake in Chennai-based Appasamy Associates Pvt. Ltd, the largest Indian manufacturer of ophthalmic equipment and intraocular lenses.
Appasamy said in a statement Wednesday it will continue to be led by the recently appointed CEO Senthil Kumar, who will drive the business with the support of the promoter family and in partnership with Warburg Pincus. Kumar was named CEO in January this year.
The Indian company didn't disclose financial terms of the transaction, saying only that this is the largest investment in the healthcare sector by the PE firm in India.
This means the deal is bigger than Warburg's $210-million (Rs 1,500 crore) investment in 2022 for a minority stake in Micro Life Sciences Pvt. Ltd, the parent organization of medical devices maker Meril Group.
Warburg, which has been investing in India for more than two decades, has previously invested in several other healthcare companies in the country. These include pharmacy retail chain MedPlus, drugmaker Laurus Labs, and diagnostics company Metropolis Healthcare, apart from Meril.
Narendra Ostawal, head of Warburg's India PE business, said that the promoters of Appasamy Associates have built “a robust enterprise” that makes high-quality ophthalmic products spanning equipment, lenses, pharmaceuticals and surgical instruments.
Appasamy Associates is present across the entire value chain of ophthalmic devices – diagnostic, surgical equipment, and lenses.
“We are witnessing a period of strong growth for the Indian healthcare sector, particularly ophthalmology, and we expect to see significant opportunities in both the domestic and export markets,” said Senthil Kumar, CEO, Appasamy.
Nuvama Investment Banking acted as the exclusive financial advisor to this transaction.
