Dr.Agarwal’s Group of Eye Hospitals raises $45 million

January 29 2016,  16.41 PM IST || Pocket News Alert


January 29, 2016: In one of the largest private equity deals in the eye care sector in India, ADV Partners (ADV) has invested around $ 45 Million in Dr.Agarwal's Group of Eye Hospitals (Dr.Agarwal’s). This will play a pivotal role in enabling Dr.Agarwal's to double their network of eye hospitals across India, Africa, Middle East and South East Asia over the next 4 years.

The expansion will be through a mix of strategic joint ventures and Greenfield hospitals. ADV's investment is predominantly in the form of compulsorily convertible preference shares in the privately held Dr Agarwal’s Healthcare Limited (AHCL). Out of the $ 45 Million investment, an undisclosed sum will be utilized to give an exit to their existing investors, Evolvence India, who have made a healthy return on their investment.

Veda Corporate Advisors acted as the exclusive financial advisors to Dr Agarwal’s and its shareholders in the transaction.

Dr.Amar Agarwal, Chairman and Managing Director, Dr Agarwal's Group of Eye Hospitals, commented, "Gone are the days when people had to travel long distances to cities and other countries to avail medical care facilities. We have brought world class eye-care services to every doorstep in India. Our vision 2020, is to strengthen the brand and double the number of hospitals with footprints across India, Africa, Middle East and South East Asia“

“Health care services and delivery is an interesting & promising space and ADV Partners is excited at the opportunity to partner with a well-established and reputed Indian healthcare institution such as Dr Agarwal’s and support its growth plans in India and abroad” said Mr. Suresh Prabhala, the Singapore based partner of ADV, who will be inducted into the board shortly.

Dr.Agarwal’s growth strategy includes expanding their hospital network in Africa (where they currently have 14 hospitals) and entering markets like UAE, Sri Lanka, Vietnam and Philippines. On the domestic front, the group will consolidate its presence in existing states and will be setting up new hospitals in Kerala, Gujarat, New Delhi, Maharashtra and Punjab. The investment coming into the group will be reinvested to execute this indicative expansion plan.

In addition to this, Dr.Agarwal’s group, with more than 30 eye care innovations behind them, will also be investing in eye care technology to bring in the advanced global practices to service its patient base across the network.

Currently the hospital chain has 60 eye hospitals, including 45 in India 14 in Africa (4 in Mauritius), 1 in Cambodia, and the target is to double the hospital count by 2020. In India, majority of the hospitals are located in Tamil Nadu, Karnataka, Telangana and Andhra Pradesh, with three hospitals shortly opening in Kerala. Dr. Agarwal is also looking to expand to other parts of the country as well. The hospital chain, which recently entered the Eastern market by opening a specialty hospital in Kolkata, is also looking at Gujarat, Maharashtra and other Northern states.

Dr.Adil Agarwal, Director, Dr.Agarwal's commented, “This is a very important milestone in the growth of this group and this investment will go towards expansion, technological development and strengthening the infrastructure to support regional growth. We aim to have our cutting edge technology and tertiary eye care services available all across the country over the next few years.”