Temasek joins PE giants in bidding war for minority stake in Romsons Group
The Indian healthcare and medtech ecosystem has seen tremendous investor interest and consolidation in recent years. In 2024, KKR won a bidding war to acquire Healthium from Apax Partners, while Warburg Pincus invested over $300 million in Appasamy Associates, an ophthalmic equipment maker.
Mumbai: Singapore sovereign wealth fund Temasek has joined the race to acquire a minority stake valued at ₹1,500 crore (approximately $170 million) in medical device manufacturer Romsons Group, three people familiar with the matter said. The deal values the overall company at about $500 million.
Private equity firms such as Warburg Pincus and TA Associates are also in the fray, the Times of India reported last month. If the deal materialises, this will be the company’s first round of external capital and will mark one of the largest deals in the space. Temasek declined to comment, while emails sent to Romsons on Thursday did not elicit a response till press time.
Founded in 1952 by Ram Lal Khanna, Romsons' goal was to move away from obsolete glass medical devices to disposable medical and surgical devices. With more than 70 years of manufacturing, the company has a wide product portfolio with multiple categories spanning adult diapers, incontinence pads and underpads, baby and mother care products such as baby wipes, baby mats and breast pumps.
Within healthcare, it also makes BP monitors, hot and cold packs, blood glucose meters and nebulisers, among other products. Beyond its domestic presence, Agra-based Romsons also has a strong export business and ships its products to more than 75 countries, including the US, Singapore, Sri Lanka, Africa, and Middle East, according to its official website.
In FY24, Romsons' total income rose marginally to ₹875.09 crore from ₹834.94 crore a year earlier. Its net profit also increased to ₹140 crore, from ₹115 crore in FY23, filings sourced by Tofler showed.
Healthcare play
Last year, Temasek was also evaluating a significant minority stake in Tynor Orthotics, a Punjab-based medical equipment maker. However, the deal was put on hold and relaunched earlier this year for a majority stake sale, Mint reported in August.
In July, Temasek-backed Manipal Hospitals bought a majority stake in Pune-based Sahyadri Hospitals from Ontario Teachers’ Pension Plan that valued the chain at about $750-760 million. The Singapore government's investment arm also bought an about 20% stake in Bengaluru-based Cloudnine Hospitals for around $125 million last year.
The Indian healthcare and medtech ecosystem has seen tremendous investor interest and consolidation in recent years. In 2024, KKR won a bidding war to acquire Healthium from Apax Partners, while Warburg Pincus invested over $300 million in Appasamy Associates, an ophthalmic equipment maker.
Morgan Stanley Private Equity Asia invested ₹1,000 crore in Maiva Pharma, an injectables maker, and Abu Dhabi Investment Authority invested $200 million in Micro Life Sciences Pvt Ltd. Other transactions include Samara Capital’s $150 million infusion in stent maker SMT and Everstone Capital’s investment in Translumina.
The Indian medtech market, valued at $12 billion in 2023-24, is projected to swell to $50 billion over the next six years, according to an EY report from last year. Rising income levels, expanding healthcare insurance coverage, and growing medical tourism, among other factors, are creating parallel demand streams for both affordable and innovative medical devices, the report said, adding that infrastructure development in tier-II and tier-III towns has also opened new markets through innovative approaches like differential pricing models.
An earlier version of this story misstated Romsons Group’s valuation as ₹1,500 crore. That figure represents the valuation of the minority stake Temasek is looking to acquire. The error is regretted.
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