Warburg Pincus acquires stake in Chennai's Appasamy Associates in its biggest India healthcare bet

This is the largest investment in the healthcare sector by Warburg Pincus in India.

Warburg Pincus has acquired a stake in Appasamy Associates, marking the American private equity firm's largest investment in the healthcare industry in India, the Chennai-based ophthalmic equipment and device company said on April 10.

Appasamy didn't share the details of the transaction. The company is a leading producer of intraocular lenses (IOLs) and ophthalmic equipment. The company operates through the whole value chain of ophthalmic devices, including IOLs, surgical instruments, and diagnostics, the release said.

The company's R&D skills and vertical integration into production enables it to provide goods that satisfy global standards at  relatively affordable costs, it said.

Senthil Kumar, the newly appointed CEO of Appasamy, will continue to guide the company's operations with the help of the promoter family and in collaboration with Warburg Pincus, the release added.

“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. We are thrilled to have the support of Warburg Pincus as well as a like-minded partner in Senthil Kumar as we steer Appasamy to the next level of growth,” Arvind Kasthuri from Appasamy’s promoter family, sai.,

Narendra Ostawal, Head of India Private Equity, Warburg Pincus said the promoters of Appasamy have built a robust enterprise to emerge as a leading provider of affordable, high-quality offerings across the complete spectrum of ophthalmic products .

"Warburg Pincus recognises the substantial potential within this space and holds in high regard the ethos, aspirations, and vision of the company,” he said.

The only financial advisor on this deal was Nuvama Investment Banking. Meril Life Sciences, MedPlus, Laurus Labs and Metropolis Healthcare are some of the Indian healthcare companies in which Warburg Pincus is an investor.