How PE backed ASG plans to create an eye care empire in India!
ASG Eye Hospital, a chain of super-specialty hospitals focused on eye care services, has been on an acquisition spree lately. Having acquired 2 sizable eye care chains recently, including Vasan Eye Care, ASG has positioned itself as one of the biggest eye care chains in the country. Eye care chains in India, who have grown slow and steady so far, will no longer have the luxury to do so. With the influx of PE capital in the sector coupled with the rise in popularity of refractive surgeries in India, the eye care sector is heating up quickly. The race is on to dominate the Indian retail eye care market, with several players, including ASG, Dr. Agarwal’s Health Care, MGM Healthcare, amongst others, vying for the top spot. With the competition heating up rapidly, these retail eye care chains have set their sights on high growth & revenue targets, along with higher focus on more lucrative surgeries. With its latest funding round of INR 1500 crores led by General Atlantic, ASG has positioned itself to become the market leader. In this article, we find out how ASG plans to create an eye care empire in India!
The Hospital Economy:
In this episode, Bhavjeet and Anirudh talk about "the hospital economy" aka highly lucrative business opportunities in servicing the various needs of a hospital. Check out the different ideas in the episode:
Founded in Jodhpur in 2005 by Dr. Arun Singhvi & Dr. Shilpi Gang, ASG Eye Hospital began its journey with a standalone hospital that has now grown to a network of 50 specialty eye care hospitals across 16 states in India, Nepal & Uganda. From its initial days, ASG has worked on a doctor led business model with a keen focus on clinical excellence & quality eye care for all. Over the years, ASG has created a name for itself, having delivered quality eye care services to over 6.5 million people. Now the eye care chain plans to rapidly accelerate its growth and capitalize on its brand value to create the country’s biggest retail eye care chain, with over 200 hospitals in the next 36 months. While the goal is ambitious to say the least, there is a massive demand for eye care services in the Indian market. With an estimated 62 million visually impaired people in the country, the demand for eye care is vastly underserved and there is a need for affordable eye care in India.
In order to execute on its domestic expansion strategy, ASG raised funding from global alternative investment fund Investicorp in 2017. The company used the capital to go on an acquisition spree with Vasan Eye Care being one of the biggest acquisitions in the space in 2017. At the time, the National Company Law Tribunal (NCLT) had ordered the commencement of insolvency proceedings against Vasan Eye Care, after it had failed to repay debts of over INR 2000 crores. ASG outbid the competition, which included MGM Healthcare, MaxiVision Eye Hospital and Dr. Agarwal’s Health Care, paying 3x the liquidation price! However, this was a strategic move that paid off for ASG, turning it into the second largest eye care chain in India. With its latest funding round of INR 1500 crores led by General Atlantic & Kedaara Capital, ASG is all set to create a strong footprint pan India, especially in Western & Southern India. While ASG already has a strong presence in the north & the east, it is starting to create presence in other parts of the country, starting with the south with the acquisition of Vasan Eye Care. Maharashtra is also one of the most important markets of ASG, where it plans to set up 10 new hospitals in the next 18 months. With its war chest full, it is very likely that ASG would be able to achieve its ambitious target of becoming the biggest eye care chain in the country!