Mumbai: Dr Agarwal’s Health Care Ltd, a Chennai-based chain of eye-care hospitals, has raised ₹270 crore from Singapore government-owned investment fund Temasek Holdings. The funds will be used to expand the company’s domestic footprint, besides investments in the latest technologies for super specialty eye-care, Dr Agarwal’s said in a statement on Wednesday.
“We believe their (Temasek) expertize and support will help our company expand our network of clinics and operations to better meet the growing demand for affordable and quality eye-care across India," said Dr Amar Agarwal, chairman, Dr Agarwal’s Group of Eye Hospitals.
The company began operations in 1957 with a single facility in Chennai.
Today, it runs 76 hospitals in 63 cities across 13 states in India, besides a dozen hospitals in 10 African nations. Dr Agarwal’s established a tertiary eye-care centre in Mauritius in 2010 to mark its international foray.
The group offers treatment for cataract, laser correction, vitreo-retinal surgery, corneal transplantation, glaucoma and squint, besides super-specialty eye-care services such as paediatric ophthalmology, ocular oncology, neuro ophthalmology, uvea and oculoplasty.
“Our aim is to deliver high quality eye-care at affordable prices at people’s doorsteps. We are looking to add between 50 and 75 hospitals to our network over the next 3-5 years with a focus on metro cities as well as tier-2 and tier-3 towns. The expansion will be done through a mix of strategic partnerships, acquisitions and greenfield hospitals," said Dr Adil Agarwal, chief executive officer at Dr Agarwal’s.
Innovation and technology will continue to be at the forefront of the company’s growth, and it will be investing more in cutting-edge technology such as robotic cataract surgery across its centres, he added.
Investment bank Veda Corporate Advisors advised the company on the fundraise.
In 2016, Dr Agarwal’s had raised ₹270 crore from ADV Partners, an Asian private equity firm.
Temasek, which manages assets worth S$308 billion ($235 billion) as on 31 March, 2018, is a major investor in India.
Some of its recent investments include financial services firm AU Small Finance Bank Ltd, port operator Adani Ports and Special Economic Zones Ltd, and payments company Pine Labs. Its healthcare portfolio in India includes investments in Medanta MediCity, Manipal Hospitals and HealthCare Global.
In an interaction with Mint in July, Temasek’s senior management said the firm’s India portfolio stands at around $10 billion, with an average annual investment of $1 billion in the last five years.
According to a report by Crisil Research, the Indian healthcare delivery market is expected to expand at a compounded annual growth rate (CAGR) of 12% to reach ₹6.8 trillion by 2019-20.