Agnivesh Agarwal, member of the founding family and son of Vedanta Group’s chairman Anil Agarwal, has picked up 60% stake in Primex Healthcare, a Chennai-based emerging complete diagnostic centres chain, for an undisclosed amount. Agnivesh will be on the board of Primex as an executive director.
Primex Healthcare is part of the Primex Group, which started its operations in late 2009 and ventured into complete diagnostic centre business in late 2010 under its subsidiary Primex Healthcare. Primex Scans & Labs, another outfit of the Primex Group, is running 50 such diagnostic centres through franchisee (partners) mode. In August 2010, Venture Capitalist Kalpathi Investments Portfolio Company had picked up 40% stake in Primex Scans & Labs.
When contacted, Anand Mahadevan, promoter and managing director of Primex Group, said, “In Primex Scans & Labs, we and Kalpathi Investments hold 40% stake each. Hence, both indirectly have an interest to the extent of 15+% each in Primex Healthcare post sale to Agnivesh Agarwal.”
Primex Healthcare will join hands with Primex Scans to add new centres, Mahadevan said.
“It is a strategic investment by Agnivesh Agarwal on his personal capacity. We see there is a great opportunity for Primex. We believe that Vedanta Group of companies will become captive customers for us while Agarwal investments will help expand our presence across the country, first in southern India with 200 outlets, both owned and franchisees. This is considered to be first major investments by Vedanta group promoters to enter into healthcare in a big way,” Mahadevan said.
“The strategic investment by Agnivesh Agarwal will provide Primex Healthcare access and capital strength for expansion and increased visibility,” he said. “Under his guidance, the group will look at all the possible ways to enlarge the scope of activities beyond dianogstic services to other areas and equally expand geographically to ensure affordable accessibility to one and all.”
Agnivesh Agarwal said: ?India has a highly fragmented diagnostics services market with many local players and a few regional/national players. Services are costly and not in line with the purchasing power of most in India. We were impressed with Primex Healthcare?s vision of providing low-cost healthcare services, one that is in perfect alignment with the ?creating happiness? socially conscious healthcare initiatives we wish to promote. We believe that we will be jointly able to establish a strong presence in the healthcare sector with steadfast commitment to quality and cost efficiency, delivering value to the society.?