Transaction:
- Birla fertility & IVF announced acquisition of 12 Baby science IVF clinics marking its entry into Karnataka, Maharashtra, and Tamil Nadu.
About Baby Science IVF:
- Established in 2020, based in Bengaluru it provides fertility treatment services.
- It operates 12 clinics in cities of South and West India such as Maharashtra, Tamil Nadu, Delhi and Haryana.
About Birla Fertility & IVF:
- Established in 2005, a part of $3 Billion CK Birla group, the company operates a network of fertility clinics, specializing in in-vitro fertilization (IVF), egg freezing, and fertility testing.
- The comprehensive range of services includes gynecological procedures, male fertility treatments, laparoscopic procedures, genetic screening, diagnostics, and donor services.
Rationale:
- The acquisition is part of Birla Fertility’s broader expansion strategy, with a planned investment of over Rs. 500 Crores. It plans to achieve this goal through a mix of organic expansion, inorganic growth and partnerships.
- The acquisition marks entry into three new states into Karnataka, Maharashtra, and Tamil Nadu further enhancing its service reach and establishing a stronger foothold in these key regions.
- The company will initially take the co-branded approach, with Baby Science’s current employees continue to oversee operations.
- With this acquisition, Birla Fertility & IVF has a combined experience of over 120,000 IVF cycles and has treated more than 230,000 patients.
- This acquisition is second for Birla IVF in three months, In May, company acquired an 86% stake in ARMC IVF, a chain of fertility centers based in Kerala. The deal, estimated by media sources to be worth about Rs. 100 crore, added seven clinics to Birla Fertility’s portfolio.
- This move aims to address the fertility challenges faced by 28 million couples in India.
- E&Y expects India’s IVF market to grow to $1.45 billion by 2027 from $793 million in 2020 at a compound annual growth rate (CAGR) of 15-20%. Custom Market Insights estimates the industry will surpass $5.05 billion by 2033 at a CAGR of 16.23%.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
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