A Rs 500-crore investment fund will soon be launched jointly by the UK government’s CDC Group and Manipal Education and Medical Group to boost healthcare services beyond conventional hospital services in India, Africa and South Asia, a media report said.
“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,” the Economic Times quoted Ranjan Pai, CEO of Manipal Education and Medical Group, as saying.
The investments will be made in out-of-hospital care services or companies in diagnostics and home-care services space.
“The quantum of investment will be on case-to-case basis. Ideally, we will prefer to provide individual investment above $10 million per transaction.” Pai added.
Some companies in India and Africa have already been identified for investment. The fund seeks to build scale through acquisitions, supporting companies that are currently constrained to grow beyond a certain level due to management and financial limitations.
“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, South Asia head of CDC, the development finance institution owned by the British government.