With Rs 1,050cr PE funding, eyecare group Dr. Agarwals looks for acquisitions
In a largest private equity funding of an eyecare provider, city based Dr. Agarwal's Health Care Ltd (AHCL) has raised Rs 1,050 crore from TPG Growth and Temasek, said a top group official.
"This is the largest private equity funding of an Indian eyecare provider. We will be using this equity infusion in expanding our presence within India and also in Africa," Amar Agarwal, Chairman, told IANS.
The Dr. Agarwal's Group has a chain of 105 hospitals in India and with the fresh funding, the number will be doubled by 2023-24.
The AHCL has 82 hospitals under its fold and 18 new ones are in the pipeline.
Speaking about the expansion, he said the company will look at greenfield and brownfield routes and the focus states will be Maharashtra, Gujarat, Punjab, Telangana and Andhra Pradesh.
"The ratio of brownfield and greenfield expansion will be 65:35. The fresh funding will attract people to do business with us," Adil Agarwal, Group CEO told IANS.
Agreeing that there are strong eye care brands at regional levels, the market is huge when one looks at the number of cataract surgeries being done in the country and plus there are other eye ailments, the two officials said.
Apart from hospitals, the company will also open 500 smaller format eyecare centres under the brand 2020 Eye Centres.
"In toto, our eyecare network will be about 700. Alongside the expansion of our eyecare network, we will also expand the number of optical outlets," Amar added.
According to Amar, the group currently performs about 25,000 surgeries per day and post expansion the number would double.
He said the AHCL was valued at about Rs 3,000 crore by the two private equity investors.
Amar said TPG Growth and Temasek will have one board seat each.
The AHCL had raised Rs 270 crore from Temasek earlier. Meanwhile, ADV Partners has exited the company.
According to Amar, the AHCL may look at going public later or go for a reverse merger with the group's listed company Dr.Agarwal's Eye Hospital Ltd (AEHL).
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