Dubai's Abraaj to invest in Indian Healthcare
Dubai-based private equity firm Abraaj Group on Tuesday said it has invested in Rainbow Hospitals, a 450-bed paediatric and maternity healthcare business based in the southern Indian state of Andhra Pradesh.
The investment has been made in partnership with CDC, the UK’s development finance institution and is worth $17.5m, the companies said in a statement.
The investment builds upon Abraaj’s long-standing partnerships with healthcare institutions in South Asia and represents its sixth healthcare investment in the region.
Established in 1999, Rainbow Hospitals is India’s largest specialised paediatric and maternity care company with four maternity, paediatric and neonatal intensive care units, and one outpatient clinic in Hyderabad.
The business has expanded with four centres added in the last six years and intends to develop beyond the state of Andhra Pradesh, with new hospitals planned for cities such as Bangalore, Chennai and Pune, and tier two cities like Vizag and Kurnool.
Welcoming the investment, Dr Ramesh Kancharla, chairman and managing director, Rainbow Hospitals, said: “This investment lets us expand and develop our high-quality medical facilities, allowing us to replicate the successful pioneering model across the country, including in cities such as Bangalore, Chennai and Pune.
"In parallel, we would also like to develop tertiary paediatric care in tier two cities like Vizag and Kurnool. The current investment would give us the capacity to expand the number of beds available to patients from the current level of 450+ to close to 1000 by 2017.”
Balaji Srinivas, managing director at The Abraaj Group, added: “There is a pressing requirement in the Indian healthcare sector for paediatric healthcare infrastructure due to the demographics of the country, which witnesses high fertility, maternal and infant mortality rates. The private sector has a critical role to play in helping to reduce fatalities and improve healthcare facilities through targeted investments.
"We are confident that our investment and support, alongside CDC, will facilitate Rainbow’s ongoing growth to help it reach its goal of becoming the leader in women’s and paediatric care.”
- Giving up on the EU? Greece, Cyprus look to GCC investors
- Turkish whistleblower: government can hand over any bank to state fund
- Why Israelis are rushing to empty out their Swiss bank accounts
- Wealth in the land of Arab Spring: Egypt's top ten richest men in 2014
- Will the US dollar peg protect GCC currencies?