09/02/2012 10:23 AST
DM Healthcare, the largest private healthcare provider in the GCC, on Wednesday unveiled a Dh2 billion expansion plan aimed at more than doubling the number of units in its network by 2015.
The Dubai-based group will raise the required finance for the ambitious expansion partly from its own resources and through an initial public offering within two years, said Dr Azad Moopen, Chairman of DM Healthcare.
Currently, the healthcare conglomerate which is marking its 25th anniversary, has among its shareholders two private equity companies — Olympus Capital Asia Investments and India Value Fund — both holding minority stakes.
Dr Moopen, outlining the roadmap for the exponential growth plans that will extend the group’s footprint across the GCC and subcontinent regions, said DM Healthcare would have 300 establishments, providing primary, secondary and tertiary healthcare with management and consultancy services by 2015.
At present, the group with revenues of over Rs12 billion, has 125 establishments under Aster and Medcare brands and daily treats more than 20,000 patients.
“We have plans to increase our network across the region, with projects that are all set for completion in the coming months. Our operations in India have been growing at a rapid pace too. Apart from increasing the network of hospitals in India’s Tier 2 and Tier 3 cities, DM Healthcare is constructing the Aster-MedCity, a state-of-the-art quaternary care referral hospital in Kochi, master planned in 38 acres of land and a medical college with 750 beds hospital in Wayand, Kerala,” said Dr Moopen. DM Healthcare has acquired a large hospital in Saudi Arabia and is constructing three hospitals in the UAE. With these, the total beds being managed by the group will be over 3,000 in India and GCC, he said. “Our target is to have 12 full fledged hosptials in the GCC in two years,” he said.
“We serve across regions, nationalities and different verticals of healthcare. With presence in the UAE, Saudi Arabia, Qatar and Oman in the Middle East and with an expanding footprint in India, we really are now present across boundaries of regions and nations. With equal presence in all the three important verticals of healthcare namely clinics, hospitals and pharmacies, we today serve about eight million people a year, who represent various nationalities,” Dr Moopen added. In January, Olympus Capital, an international investment company backed by funds managed by Olympus Capital Holdings Asia, announced the investment of over Rs5 billion ($100 million) for a significant minority stake in DM Healthcare.
With this move, Olympus Capital became the group’s largest external investor as the existing promoters continue to be the largest shareholders in the company.
The transaction was a combination of Olympus Capital’s primary investment into DM Healthcare to help speed up the growth and expansion of the company in India, and secondary purchase of a portion of India Value Fund’s shareholding in the company.
Veda Corporate Advisors Pvt Ltd was the exclusive advisor to DM Healthcare on this transaction. Veda had also advised the group in its previous round of $45 million fundraising from India Value Fund in 2008. The latest capital injection will enable DM Healthcare to address the challenge of providing world-class healthcare services in the rapidly growing markets of India and the GCC countries, said Dr Moopen.
“We remain optimistic about the business prospects of the healthcare sector. With the strong support of our investors and our experienced management team, I am confident that DM Healthcare is positioned for continued growth in the healthcare sector in both India and the GCC region,” said Dr Moopen, who continues to hold the majority stake in the company.
Khaleej Times
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