Eye care industry at inflection point, boom in M&A activity likely

economictimes.indiatimes.com:

India’s eye care sector is likely to witness a boom in mergers and acquisition (M&A) activity as it hits an inflection point from where organized players looking to build a national footprint will try and disrupt a market which has traditionally been dominated by mom-and-pop shops, according to several eye care entrepreneurs and industry watchers ET spoke with. The M&A boom could witness the emergence of four or more large players who could collectively own over 2000 eye hospitals in the next five years with a national footprint. As much as half of their expansion could come through acquisitions, as per industry watchers.

Opthalmologists who run small clinics in different parts of the country currently serve the needs of patients who require surgical interventions for cataract removal or correction of eye sight. The larger players who have access to capital are aiming to acquire smaller ones and bring them under a unified brand. “Earlier opthalmologists were reluctant to sell their individual eye care practices.

But circumstances have changed. Often their children may not be opthalmologists and have no interest in continuing the practice. This leads to opportunities for joint ventures or acquisitions.

We are seeing this in areas such as Gujarat, Maharashtra and Mumbai”, said Dr. Mahipal Sachdev, founder of Delhi-based Centre for Sight, an eye hospital chain with over 90 centers. Sachdev is a Padmashri awardee and a practicing ophthalmologist who left his position at All India Institute of Medical Sciences to start his own eye care hospital chain in 1996.