Private equity firm Warburg Pincus has acquired a stake in Appasamy Associates, a Chennai-headquartered manufacturer of ophthalmic equipment and devices, a statement from both parties said. This is the PE firm’s largest investment in the healthcare sector in India. The financial details of the deal were not disclosed.

Appasamy is a manufacturer of ophthalmic equipment and intraocular lenses (IOLs). Founded in 1978, it is present across the entire value chain of ophthalmic devices – diagnostic, surgical equipment, and IOLs, and caters to domestic and export markets. The company will continue to be led by the recently appointed CEO, Senthil Kumar, who will drive the business with the support of the promoter family and in partnership with Warburg Pincus.

“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,” Arvind Kasthuri, a member of Appasamy’s promoter family, said. “We are thrilled to have the support of Warburg Pincus as well as a like-minded partner in Senthil Kumar as we steer Appasamy to the next level of growth.” 

“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,” Appasamy CEO Senthil Kumar said. 

“Warburg Pincus recognizes the substantial potential within this space and holds in high regard the ethos, aspirations, and vision of the Company,” Narendra Ostawal, head of India Private Equity, Warburg Pincus said. Warburg Pincus’ other investments in the Indian healthcare sector include Meril Life Sciences, MedPlus, Laurus Labs, and Metropolis Healthcare.

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