THEAFRICABAZAAR Staff Writer
January 13, 2016
Access to quality healthcare services in most emerging and developing markets remains a premium, which leaves out majority of the population
The Abraaj Group, the Dubai-based private equity firm, is stepping up moves in India’s healthcare market by picking up a majority stake in Quality CARE India Ltd, one of the country’s multi-specialty healthcare providers, from global private equity firm Advent International.
Sev Vettivetpillai, Partner and Global head of Abraaj’s Thematic Funds Business, said the deal is an opportunity for the firm to help build a better and more sustainable healthcare infrastructure in India, which it hopes will translate into narrowing the huge healthcare gap in the country.
Access to quality healthcare services in most emerging and developing markets, like India, still remains a premium, which leaves out majority of the population, especially women and children, from receiving quality healthcare services when they become ill.
Building upon CARE’s existing integrated healthcare network system, Mr. Vettivetpillai said the Abraaj team plans to work with the CARE’s management team and doctors to accelerate the deployment of healthcare solutions to underserved communities in India.
Headquartered in the city of Hyderabad, CARE, which currently owns 16 multi-specialty hospitals across India and is the fifth largest healthcare provider in the country with focus on specialized medical care including cardiac care and neurosciences, provides quality healthcare to middle and low income patients in undeserved second tier cities in India.
Advent International partnered and began working with CARE four years ago to grow the hospital brands by increasing bed capacity, broadening its clinical offerings and expanding its platform through new hospital construction and acquisitions to achieved strong, sustainable growth, while improving access to quality healthcare. The hospital brands now serve more than 1 million patients.
Shweta Jalan, Managing Director at Advent International in Mumbai, said the hospital brands “together with its new partner Abraaj is well positioned for its next phase of expansion.”
Dr. B. Soma Raju, who co-founded CARE in 1997 with a group of professionals, said the strategic partnership with Abraaj will help the hospital brands enhance its healthcare service offerings as well as play a key role in enhancing public-private partnerships that are essential to the development of sustainable healthcare systems in India.
“Access to healthcare is a fundamental right of every individual and we are delighted that CARE and Abraaj share this common vision. We are confident that Abraaj with its track record, healthcare expertise and strong relationships with leading strategic partners and development finance institutions, will enhance our service offerings,” Raju said.
Vettivetpillai added that the partnership deal “has the potential for further expansion domestically and internationally.” where Abraaj operates.
“We are excited to partner with one of India’s leading healthcare providers and contribute to developing more robust health systems in growth markets,” said Vettivetpillai.
Abraaj’s investments in healthcare assets in growth markets has increased in recent past years, having deployed nearly $1 billion globally in 27 investments across the healthcare spectrum, including two recently in North Africa.
As part of the deal, the CARE Foundation, the company’s education, training and rural community outreach program, will also be scaled up and expanded to develop and train high caliber nurses, technicians, physiotherapists and community health workers, the firm said.
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