CDC, Ma­ni­pal Co Ink Health­care Part­ner­ship

.₹ 500-crore fund to in­vest in health­care ser­vices be­yond con­ven­tional hospi­tal ser­vices Here’s Life­line

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Ben­galuru: CDC Group, the de­vel­op­ment fi­nance in­sti­tu­tion owned by the UK gov­ern­ment, and Ma­ni­pal Ed­u­ca­tion and Med­i­cal Group (MEMG) have tied up to launch a .₹ 500-crore cor­pus to in­vest in health­care ser­vices be­yond con­ven­tional hospi­tal ser­vices.

This part­ner­ship will in­vest in in­no­va­tive op­por­tu­ni­ties in In­dia, Africa and South Asia. The plat­form will tar­get ‘out-of-hospi­tal’ care ser­vices/com­pa­nies, like di­ag­nos­tics and home-care ser­vices.

“The ob­jec­tive of tar­get­ting this space is be­cause, in­creas­ingly the cus­tomer would pre­fer avail­ing such ser­vices closer to home. (The se­lected teams) would typ­i­cally be com­pa­nies which have es­tab­lished a good rep­u­ta­tion for pro­vid­ing high qual­ity ser­vice in a re­gion or have a unique product/ser­vice of­fer­ing,” said Ran­jan Pai, CEO of Ma­ni­pal Ed­u­ca­tion and Med­i­cal Group. “The quan­tum of in­vest­ment will be on case-to-case ba­sis. Ideally, we will pre­fer to pro­vide in­di­vid­ual in­vest­ment above $10 mil­lion per trans­ac­tion.”

Com­pa­nies in the molec­u­lar di­ag­nos­tic space, in In­dia, and in­fec­tious dis­eases in­ves­ti­ga­tions, in Africa, have been iden­ti­fied for in­vest­ment by the part­ner­ship.

The part­ner­ship’s pri­mary fo­cus will be on build­ing scale through ac­qui­si­tions and will back en­trenched mar­ket play­ers and strong man­age­ment teams. The plat­form will sup­port firms that are cur­rently con­strained to grow be­yond a cer­tain level due to man­age­ment and fi­nan­cial lim­i­ta­tions. Size of cor­pus fund

in­vest in in­no­va­tive op­por­tu­ni­ties in In­dia, Africa and South Asia

tar­get ‘out-of-hospi­tal’ care ser­vices/com­pa­nies, like di­ag­nos­tics & home-care ser­vices

over $10 mil­lion per in­vest­ment

“Each of the po­ten­tial in­vestee com­pa­nies would be pro­fes­sion­ally run by the key team mem­bers un­der the su­per­vi­sion and guid­ance of an in­de­pen­dent board. Ma­ni­pal’s sup­port to the in­vestee com­pa­nies will be at the board level in terms of strate­gic direc­tion, val­i­da­tion, sug­ges­tions for process im­prove­ment, ser­vice di­ver­si­fi­ca­tion, iden­ti­fi­ca­tion of key man­power re­sources and de­sign of ef­fec­tive con­trol sys­tems,” said Pai.

While this part­ner­ship will in­cu­bate and grow busi­nesses in ‘Health­care Be­yond Hos­pi­tals’, both MEMG and CDC will con­tinue in­de­pen­dently to pur­sue in­vest­ing in the con­ven­tional hospi­tal space in the tar­get­ted mar­kets. The part­ner­ship will also look to in­crease in­vest­ment in the fu­ture. “CDC is com­mit­ted to sup­port­ing the growth of the health­care sec­tor in In­dia be­cause of the jobs cre­ated and the in­no­va­tions that can im­prove ac­cess and bring higher qual­ity care for all pa­tients. We are de­lighted to be work­ing with Ma­ni­pal, a strong op­er­a­tional part­ner, who have pi­o­neered health­care de­liv­ery and ed­u­ca­tion in In­dia,” said Srini­vasan Na­gara­jan, CDC’s head of South Asia.

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