Warburg Pincus picks up controlling stake in Chennai's Appasamy for $300 mn
MUMBAI : Warburg Pincus has picked up a stake in Chennai-based Appasamy Associates Pvt. Ltd., a manufacturer of ophthalmic equipment and devices, in what is the US-based private equity firm's largest investment in the healthcare sector in India, a statement released by the two firms said. Though the firms did not disclose the financial details of the deal, people with knowledge of the matter said that Warburg has acquired around 65% stake in the company for nearly $300 million.
The promoters will continue to hold the remainder stake, they said. Appasamy is India's largest 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.
“Medical devices for us is a programmatic thesis and this (investment in Appasamy) is not a one-off deal. We have created a very differentiated healthcare portfolio. These companies are not just local champions who dominate the market in India but also have the ability to become global players.
So, it is a great combination of growth in local market and being able to export too," Narendra Ostawal, head of India private equity, Warburg Pincus, told Mint. According to him, while ophthalmology looks like a niche, it is has a very big market globally. “What is happening today is that financial sponsors are looking for stories with more resilience especially when there is so much uncertainty in the global markets.
And healthcare provides that resilience," he added. “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. As Appasamy
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