|
Appasamy Owners Look To Sell
Controlling Stake
Mar 14, 2023
Promoters of Appasamy Associates plan to sell a controlling
stake in the Chennai-based medical equipment manufacturing company, and are in
initial talks with private equity investors, two people aware of the development
told ET. The potential sale is likely to value the company at ₹1,800-2,000 crore.
Investment bank Edelweiss Finance has been hired for the sale
process. Names of the potential PE investors could not be ascertained yet.
The recent death of founder promoter Kasthuri N Ravilla has
prompted the second-generation members to offload the majority stake and
professionalise the family business. Even if the stake is sold, the existing
promoter family will continue to hold a minority stake, said sources.
Appasamy Associates, which is nearly five decades old, has
been a leading manufacturer and distributor of ophthalmic equipment,
microscopes, lasers, intraocular lens (IOL) and microsurgical instruments. The
company is the exclusive distributor for Canon’s medical equipment in India.
Appasamy Associates is expected to post revenue of ₹500 crore
with an Ebitda of ₹130 crore in FY23, said sources.
When contacted, Arvind Kasthuri, executive director at
Appasamy Associates, declined to comment.
Appasamy Associates had begun operations in 1978 by
introducing India’s first low-cost cryo surgical equipment for ophthalmology for
₹1,800, whereas an equivalent imported unit costs ₹20,000. The largest selling
global cataract lens brands in India are Johnson & Johnson, Bausch & Lomb, Zeiss,
Rayner, Hoya and Alcon, while the popular Indian brands are Appasamy, Aurolab
and IoCare.
Among the Indian brands, Appasamy is the leader with about
75% market share.
India is one of the largest eye-care markets by volume, where
6.5 million plus people undergo cataract surgery every year. The Centre plans to
clear the backlog of cataract surgeries – pending since the Covid outbreak – by
increasing the number of surgeries to a total of 27 million in the next three
years.
According to reports, the global cataract-lens market is
expected to touch $8 billion in the next 5 years.
The Indian medical devices industry is among the sought-after
investment destinations for private equity investors. Apax Partners had acquired
Healthium, a medtech company focused on products used in surgical,
post-surgical, and chronic care, for $350 million in 2018. Last year, Warburg
Pincus invested $210 million for a minority stake in Micro Life Sciences, the
parent organisation of Meril group of companies, India’s largest medical devices
company.
The current market size of the medical devices industry in
India is estimated at $11 billion and it is poised for significant growth with
the market size expected to reach $50 billion by 2030, according to Investindia.
https://mnacritique.mergersindia.com/news/appasamy-ownerslook-to-sell-controlling-stake/
|
