Lotus Surgicals Private Ltd.

Lotus Surgicals Private Ltd.

Lotus Surgicals Private Ltd.

May 2023

Announced Date: May 2023

Value: USD 42 million

o3 Capital acted as the exclusive financial advisor to Samara Capital & the promoters on 100% stake sale of Lotus Surgicals to Tube Investments of India Limited (“TII”) & Premji Invest (“PI”)

Founded in 2005, and led by Mr. Mehernosh Daruwalla, Lotus offers a comprehensive product portfolio comprising entire range of surgical sutures, hernia meshes, skin staplers, open & endoscopic GI staplers, laparoscopic accessories, hemostats and hemostatic clips and energy devices, used for high-end specialties such as cardio thoracic surgeries, liver transplants, GI oncology and bariatrics. It delivers superior quality products through its state-of-the-art manufacturing facility equipped with Class 10000 infrastructure, stringent quality control norms and automated packaging capabilities, all of which combined, set it apart from its domestic peers.

Its deeply entrenched distribution network, with 800+ dealers, has augmented its capability to establish a pan-India reach to over 12,500 hospitals. It has also rapidly expanded its presence in the global markets through exports to 35+ countries over the last 5 years.

The deal provides a complete exit to the erstwhile shareholders, i.e. the promoter Mr Mehernosh Daruwalla and his family and Samara Capital, who had invested in Lotus for a controlling stake. The acquisition is the first step for TII and PI to initiate a Medtech Platform partnership. The platform aims to scale-up via a mix of organic and inorganic initiatives. It draws inspiration from the vision of “Atmanirbhar Bharat” and aspires to become a global platform to design, manufacture and distribute world-class medical products at affordable price points.

“We acquired a controlling stake in Lotus at an early stage of its evolution to unlock the high potential of surgical consumables / devices sub-sector. We are happy to state that during our investment period, we were able to put it on a strong footing and grow its overall sales and profitability by almost five-fold. We wish the new leadership team of TII and PI all the very best in their journey ahead with the Company.”, said Manish Mehta and Abhishek Kabra, Managing Directors of Samara Capital.

“We have had a very successful partnership with Samara Capital, which has helped Lotus emerge as a leading medical devices brand in India. We are glad to now hand over the baton to the TII and PI partnership to take Lotus to the next phase of growth and scale greater heights.”, said Mr. Mehernosh Daruwalla, Promoter of Lotus.

Mr. M.A.M Arunachalam, a.k.a Arun Murugappan, Executive Chairman of TII said, “The acquisition of Lotus marks our entry into the med-tech business. We believe that the Indian medical industry is expected to be one of the fastest growing sectors driven by both demand and supply side factors. We are delighted to join hands with Premji Invest. Our deep expertise in establishing and managing large scale manufacturing, coupled with Premji Invest’s strong domain knowledge and investing experience will enable Lotus to tap the immense potential in the med-tech business.”

Mr. T K Kurien, Chief Investment Officer of PI said, “TII has an outstanding track record of incubating and scaling businesses across diverse sectors and creating stakeholder value. Premji Invest is pleased to deepen its partnership with TII through this med-tech platform. We believe the medical consumables market is attractive, and there is a unique opportunity to create a global platform that manufactures and distributes world class medical products by leveraging cutting-edge technologies.”

On the transaction, Mohit Khullar, Managing Director of o3 Capital said, “Lotus, with its comprehensive product portfolio and deeply entrenched presence across corporate chains, standalone hospitals as well as nursing homes is an excellent platform for TII & PI to embark on their journey to building India’s leading med-tech platform. The deal also highlights the increasing contribution of Indian companies to the government’s ‘Make in India’ campaign and their vision to develop India as the global base for delivering high-quality, affordable medical products for the world.”

This deal marks o3 Capital's 11th deal closure in the Healthcare and Lifesciences space in the last 18 months. The deal reiterates o3 Capital’s strong credentials in the Healthcare and Lifesciences segment and our ability to consummate deals in medical devices space within the healthcare industry.