Singapores GIC picks stake in Vasan Healthcare for $100 m

Written by R Ravichandran | Chennai | Updated: Mar 15 2012, 13:17pm hrs
The Government of Singapore Investment Corporation (GIC) through its affiliates has picked up a minority stake in Chennai-based Vasan Healthcare, Indias largest eyecare and dental care company, for $100 million.

GIC joins Sequoia Capital and Westbridge Capital, which have invested around R200 crore in Vasan. Sequoia and Westbridge have been with Vasan since 2008.

GIC is likely to be the second largest shareholder (though minority) after promoters, who continue to hold majority stake in the company, sources told FE on Wednesday. GICs investment will help Vasan expand its network of eye hospitals from its current 102 hospitals and its dental hospitals from the present network of 14 centres. The expansion will be through a mix of organic as well as inorganic means.

We are delighted to begin this partnership with Vasan. The promoters of Vasan, in a short span of time, built Vasan as a leader in the healthcare sector.The completion of this transaction also underscores our commitment to increase our investments in India, said Ang Eng Seng, global head of GICs Direct Investments Group.

We are very excited to welcome GIC on board as an investor in Vasan. It is a very important milestone in evolution and growth of Vasan and I am confident that the partnership with GIC will give Vasan the leverage to emerge as the Worlds leading healthcare provider. Sequoia Capital and Westbridge Capital provided the early impetus to Vasan and we believe the investment by GIC will enable us to scale greater heights. said AM Arun, chairman and managing director, Vasan Health Care.

We are delighted to welcome GIC as an investor into Vasan and I am sure that their presence will help the company as they continue to build a trusted and credible franchise in the healthcare space, said VT Bharadwaj, managing director, Sequoia Capital.

KP Balaraj, managing director, WestBridge, added, Arun and his team have built an amazing consumer brand franchise in healthcare services across eye and dental care. Vasan Healthcare will be a very large, valuable and global franchise in the years to come.

In 2002, Vasan started with a single eye care hospital based in Trichy, operating under the brand Vasan Eye Care. Since then Vasan has expanded its footprint across the country with state-of-the-art eye care hospitalsand dental clinics. Vasan today employs over 600 ophthalmologists and over 140 dentists as part of its 6,000+ strong workforce.

Vasans hospitals today on the average treat over 25,000 patients per day and performs around 100,000 cataract surgeries per year. Vasan has been certified as the Worlds Largest Eye Care provider with the maximum number of standalone surgical centres in 2011 by Frost & Sullivan.