India is Looking at an Eye Care Boom

India’s eye care Industry is at a watershed moment. The industry is all set to host a boom in mergers and acquisitions (M&A) as organized players looking to build a national footprint are trying to disrupt a market that has traditionally been dominated by mom-and-pop shops. ASG Eye Hospitals' recent acquisition of Vasan Eye Care is likely to be an indication of the changing industry landscape. ASG Eye Hospitals, a chain of super-specialty hospitals delivering eye care services, acquired Vasan Eye Care with a bid value of Rs 526 crore on February 3,

2023. The Chennai Bench of the National Company Law Tribunal (NCLT) approved the acquisition. ASG Eye Hospitals, on its mission to expand its footprint in India, is backed by private equity investors General Atlantic, Kedaara Capital, and Foundation Holdings.

According to a report by IBEF, in the next five years, the M&A boom might see the rise of four or more significant firms, which together could own more than 2,000 eye hospitals across the country. These acquisitions may account for up to 50 percent of their growth. India outperformed the US, Europe, and China combined in the number of cataract procedures conducted in a single year, performing 83 lakh in the fiscal year 2022-23. Currently, small and local eye clinics that perform surgeries for removing cataracts or improving eyesight are run by eye doctors across the country. The bigger companies with investor backing are trying to take over the smaller ones and join them under one name. The unorganized industry is getting organized, and it has several pros and cons. It’s a let’s wait and watch situation. We think it is the right time to publish our yearly special issue based on the eye care scenario.