Warburg Pincus Picks Stake in Chennai’s Appasamy Associates in its Largest Healthcare Bet in India

However, Appasamy did not disclose the financial terms of the transaction.

Private equity firm Warburg Pincus has acquired a stake in Chennai-based Appasamy Associates, in what the ophthalmic equipment maker calls the largest investment in the healthcare sector by the firm in India.

However, the financial terms of the transaction remain undisclosed.

Appasamy is the 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.

Further, its vertical integration into manufacturing and its R&D capabilities allow Appasamy to offer products that meet global standards at comparatively affordable prices.

On the deal, Arvind Kasthuri, promoter family, Appasamy. said, “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.”

Nuvama Investment Banking acted as the exclusive financial advisor to this transaction.

Appasamy has built a robust enterprise that has emerged as a leading provider of affordable, high-quality offerings across the complete spectrum of ophthalmic products spanning equipment, lenses, pharmaceuticals, and surgical instruments.

Commenting on the prevailing opportunities at the ophthalmology segment, Senthil Kumar, CEO, Appasamy said, “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 progresses into this new era of expansion, we are excited to partner with Warburg Pincus given the firm’s global expertise in healthcare and its long-term business-building focus in India.”

Founded in 1966 by Eric Warbung, Warburg Pincus is a global private equity firm. It invests in a range of sectors including retail, industrial manufacturing, energy, financial services, healthcare, technology, media, and real estate.

Some of Warburg Pincus' investments in the Indian healthcare sector include Meril Life Sciences, MedPlus, Laurus Labs, and Metropolis Healthcare.

Sharing thoughts, Narendra Ostawal, head of India Private Equity, Warburg Pincus said, “Warburg Pincus recognizes the substantial potential within this space and holds in high regard the ethos, aspirations, and vision of the Company. Senthil brings great strengths in building and scaling teams and products across geographies, and we are excited to collaborate with him in Appasamy’s next phase of growth.”

Recent Global Acquisitions

In a recent development, Johnson & Johnson announced plans to acquire US-based Shockwave Medical for $13.2 billion.

Reportedly, Johnson & Johnson has entered into a definitive agreement with Shockwave to acquire all outstanding shares of the latter for $335.00 per share in cash, amounting to an enterprise value of approximately $13.1 billion, including cash acquired.

In a significant development, OMRON Healthcare, a global leader in medical devices and health technology, acquired Luscii Healthtech, a Dutch digital health company.

The deal, valued at an undisclosed amount, marks a strategic move by OMRON to expand its digital health offerings and strengthen its position in the healthcare market.

Since OMRON's seed investment in 2018, the two companies have collaborated closely, sharing knowledge and experience in the development of digital health.