New Delhi, June 17 -- Burman family, promoters of fast-moving consumer goods (FMCG) conglomerate Dabur, is exploring the divestment of its diagnostics chain Oncquest Laboratories Ltd, people close to the development told VCCircle.
Oncquest offers basic routine tests, super-specialised tests and advanced genomic testing. As per the website of the company, it started as a research entity of Dabur Research Foundation way back in 2001 and has been trying to be a forerunner in the molecular diagnostics services across India and neighbouring countries.
Headquartered in Gurugram, Haryana, its national footprint spans 50 labs, over 400 collection centres and 2,500 service associates. It conducts roughly 4,000 different tests - from routine to the most complex ones.
The promoters of Oncquest have engaged with multiple investors over the last few months exploring divestment options, the people mentioned above said.
"The asset has been in the market for many months, generating interest and engagement from multiple quarters. While it has not mandated any investment banker exclusively for the asset sale, several bankers have worked on the deal in the last few months. The deal is yet to see movement though," one of the persons mentioned above said.
The second person said the promoters have also tried to scale up the business and make it a profitable venture over the years. "The second plan for the family is to scale up through tie ups and funding, making it a profitable venture that remains under the business's umbrella, similar to how it runs its other units. However, they are yet to make it profitable and scale it up significantly," he added.
"The asset keeps coming up for sale in the market off and on. Sometimes, it is up for grabs with active conversations with investors and at other times, it goes off as promoters try to grow the business and make it a profitable venture," the second person said.
A spokesperson for Dabur said: "We do not comment on market speculation. However, in the normal course, we do regularly receive unsolicited interest in the business."
Oncquest posted net sales of Rs 96.8 crore in FY25 as against Rs 97.3 cr in FY24, as per VCCEdge, the date platform of VCCircle. It, however, narrowed its losses during the period from Rs 66.2 crore to Rs 40 crore.
Both the sources said that the deal has failed to materialise with any interested party due to valuation or fitment issues despite best efforts from the stakeholders.
Diagnostics space has lately been on a strong footing with multiple investors betting on firms to tap the market's potential. The sector has recently seen strong interest from the investor community amid a rise in chronic ailments, increasing awareness for preventive health checkups and rising income levels, which are spurring wellness-related consumption.
Recently, Redcliffe Labs acquired a diagnostic centre in Ajmer. Chennai-headquartered radiology and pathology diagnostic chain Aarthi Scans Pvt Ltd is set to onboard ICICI Venture as an investor on its cap table, VCCircle had reported.
Earlier, VCCircle had reported that Morgan Stanley-backed Sterling Accuris Wellness Pvt Ltd was looking to raise a fresh round of equity capital. North India-focussed House of Diagnostics Healthcare Pvt Ltd raised funding from 360 ONE Asset last month, while VCCircle reported in December that private equity firm Vixar, earlier known as Arpwood Partners, acquired a majority stake in Bengaluru-based dAIgnostiX Services Pvt Ltd.
Published by HT Digital Content Services with permission from VC Circle.