Dubai's Abraaj invests in Indian healthcare firm

  • Share via facebook
  • Tweet this
  • Bookmark and Share

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.”

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Capital plans: how Qatar's banks are shaping up

Capital plans: how Qatar's banks are shaping up

Ahli Bank chief executive Salah Murad says that despite competition...

The spectacular rise and fall of Arabtec

The spectacular rise and fall of Arabtec

The ups and downs of Dubai most heavily traded stock teaches...

1
MidEast investors eye $180bn overseas spending

MidEast investors eye $180bn overseas spending

Arab institutional investors have been buying up swathes of ...

Most Discussed