ChrysCapital invests $100M in Centre for Sight, acquires Mahindra Holdings' stake

ChrysCapital, an India-focused private equity firm, is investing up to $100 million in New Delhi's Centre for Sight (CFS), a prominent eye care chain. 

The strategic investment is structured as a mix of primary capital infusion and a secondary transaction involving the acquisition of the entire stake previously held by Mahindra Holdings Limited, a wholly-owned subsidiary of Mahindra & Mahindra Limited. With this move, ChrysCapital will hold a significant minority stake in CFS.

Investment to enhance operational scope

The investment by ChrysCapital is aimed at enhancing CFS's operational scope, particularly its expansion across Tier 1 and Tier 2 cities in India.

Currently, CFS operates 83 centres across 39 cities and is planning to extend further. 

The capital will primarily be used to add 6-8 new centers annually through greenfield and brownfield projects, in line with the company's aggressive growth strategy.

This expansion will not only increase accessibility to quality eye care but also bolster CFS's market presence against competitors like ASG Eye Hospitals.

What does this mean for the eye care industry?

Centre for Sight, founded in 1996 by the renowned ophthalmologist Dr. Mahipal S. Sachdev, stands as one of the top three organized eye care chains in India.

It boasts a wide range of services including advanced surgical procedures and has achieved significant technological milestones in the industry.

With an annual footfall exceeding 1.5 million patients and a strong presence in North India, particularly in Delhi-NCR, the investment by ChrysCapital is poised to catalyze further growth and innovation within the eye care sector.

What are the future plans for the Centre for Sight?

Dr Mahipal Sachdev highlighted that the new funds would accelerate the expansion plans of CFS, particularly focusing on smaller cities and towns. The firm is also exploring opportunities for inorganic growth through potential acquisitions.

Furthermore, Dr Sachdev revealed plans for a public listing of CFS shares within the next 3-4 years, aiming to reach an EBITDA of around Rs 150-200 crore before the IPO.

The previously planned IPO was withdrawn in 2016-17 due to unfavourable market conditions, but the current growth trajectory and financial health suggest a more auspicious outcome in the near future.