LONDON, July 17, 2018 /PRNewswire/ --
Investment will tap into the
rapidly growing $100 billion Indian
healthcare market and expand the
company's export
footprint
- Ascent Meditech is a leading Indian medical products company
and distributor of niche consumer healthcare products, with a focus
on orthopedics, pain and wound care. Today products are sold to
seven million customers annually via 150,000 retail points
- Its flagship brand, Flamingo, is one of the most popular
consumer health brands in India.
The company also exports products to 40 countries in Asia, Africa
and the Middle East.
- The investment will tap into the $100
billion Indian healthcare market, which is expected to grow
at 12-15% CAGR[1], and help Ascent capitalise on the
significant export market opportunity: $4
trillion of global health expenditure is projected to come
from emerging economies by 2022[2]
- This investment builds on LeapFrog's success investing in
consumer-focused healthcare companies, including East Africa's largest pharmacy brand, Goodlife
Pharmacy
LeapFrog Investments ("LeapFrog"), the leading investor in
companies that deliver healthcare and financial services for
emerging consumers, has acquired a majority stake in Ascent
Meditech ("Ascent"), the health company behind the market-leading
Flamingo brand. The company's products are currently sold to seven
million customers, with a focus on providing high quality and
competitively priced orthopaedics to India's aging population.
(Logo:
https://mma.prnewswire.com/media/706245/LeapFrog_Investments_Logo.jpg
)
Ascent, which has built a sophisticated manufacturing,
distribution and retail strategy, specialises in wound care,
mobility aids and orthopaedic soft goods. The company sold 15
million products in 2017 through its extensive network of 150,000
retail pharmacy points across 12 Indian States. Ascent's flagship
brand of products, Flamingo, is sold in more than 44 countries
across the globe.
Over 80% of Ascent products are for treatment for orthopaedic
disorders, which affect over 200 million people in India. The share of India's population over the age of 60 is
projected to increase from 8% today to 19% by 2050[3].
Elderly populations tend to have a higher prevalence of orthopaedic
ailments, preferring less invasive solutions to surgery.
Felix Olale, Partner
and Global Co-Lead for Health Investments at LeapFrog,
commented: "The Ascent Meditech team has achieved outstanding
growth in the orthopaedic and wound care market, addressing a core
need for consumers with high quality products and competitive
prices, thus opening up accessibility. We see a huge opportunity
for LeapFrog to partner with an outstanding management team to
increase production and distribution of Ascent's quality and
trusted products, including the flagship Flamingo brand, in
India, Asia, Africa,
and the Middle East."
The investment in Ascent will capitalise on the favourable
dynamics in both the domestic and international markets. The
$100 billion Indian healthcare market
is expected to expand at 12-15% CAGR. Outside of India, the global market for orthopaedics and
prosthetics spend is expected to reach $806.7m by 2020, more than double that of 2014,
according to a report by Deloitte[4].
LeapFrog will leverage its deep expertise in healthcare and
emerging consumer insights to support Ascent's growth plans and
will create additional value through continuing to strengthen the
Flamingo brand. This will be achieved by utilising
LeapFrog-generated consumer insights to develop additional
consumer-focused products, while also expanding Ascent's presence
in sub-Saharan Africa and Southeast
Asia by leveraging LeapFrog's network in these
geographies.
Rajiv Mistry, CEO at Ascent
Meditech, commented: "We are delighted to partner with LeapFrog
Investments, who share our vision of opening up access to quality
and affordable healthcare products and continuing to grow this
market leading and trusted brand. Ascent Meditech will benefit
greatly from LeapFrog's extensive network, as the company enters
its next phase of growth."
This investment builds on LeapFrog's track record in the Indian
market and on LeapFrog's decade of experience in partnering with
emerging market businesses to provide health insurance to emerging
consumers. The company has successfully conducted six full and
partial exits from key Indian brands including Mahindra Insurance
Brokers, Magma Fincorp, and Northern Arc (formerly IFMR Capital)
over the last 19 months. Health exits include global mobile health
insurance provider BIMA to Allianz X, and West African life and
health insurance provider Express Life, to Prudential PLC.
About LeapFrog Investments
LeapFrog invests in extraordinary businesses in Africa and Asia. LeapFrog invests in extraordinary
businesses in Africa and
Asia. We partner with their
leaders to achieve leaps of growth, profitability and impact.
LeapFrog companies now operate across 149 markets reaching 130
million people with healthcare and financial services. Over 110
million of those are emerging consumers, often accessing insurance,
savings, pensions, credit and healthcare for the first time.
LeapFrog companies provide jobs and livelihoods to 120,000 people.
These companies have grown on average by nearly 40 per cent per
annum since LeapFrog's investment. LeapFrog was recently named by
Fortune as one of the top five companies changing the world,
alongside Apple and Novartis, becoming the first private equity
firm ever to be listed.
About Ascent Meditech
Ascent is a leading consumer healthcare products business in
India, underpinned by a 30-year
old brand ('Flamingo') and a wide distribution network. The Company
was founded in 1991 by Rajiv Mistry
who continues to lead the business as CEO. Ascent is a leader in
orthopaedic soft goods, wound care and other healthcare products.
The Company sold c.15 million products in FY17, with its products
being sold via stockists to over 150,000 retail pharmacies in
India.
Ascent's flagship brand of products - "FLAMINGO" - sells in more
than 40 countries across the globe, primarily in the Middle East, Africa, and Southeast Asia.
Notes:
- Founded in 1991, Ascent Meditech is majority owned by Founder
Rajiv Mistry, who will remain CEO of
the company.
- LeapFrog, which manages over $1
billion of commitments since its inception in 2007, brings a
proven 10-year track record as a trusted manager for institutional
capital in emerging markets. LeapFrog Investments invests
$10-50 million for majority or
influential minority stakes in growing companies that have
exceptional management teams and are focused on providing services
that address the needs of emerging consumers.
[1]India Hospital Sector Report - Frost and Sullivan
(2017)
[2] World in 2050, PwC (2015); McKinsey (2016)
[3]UNFPA Report - Caring for Our Elders: Early
Responses (2017)
[4]Deloitte report - Medical Devices Making in
India - A Leap for Indian
Healthcare (March 2016)
For further information, please contact:
Greenbrook Communications
James Madsen / Gina Bell / Ed
Jenkins
+44(0)2079522000
leapfrog@greenbrookpr.com