New Delhi: The $14 billion (Rs62,000 crore) Hinduja Group on Monday announced that it will partner Dubai World, owned by the Dubai government, for its foray into the health-care business.
On 8 March, Mint had reported that the group was scouting for a partner. The joint venture, in which the Hindujas will hold a 51% stake, will invest $1 billion (Rs4,300 crore) in the business over the next two-three years. Limitless llc, the real-estate arm of Dubai World, will hold the remaining 49%. The Hinduja Group also announced a separate investment in Dubai World (see story on this page)
“We are looking at building not just hospitals, but the entire medical infrastructure around them, in terms of nursing training schools, diagnostics training, clinical research facilities and traditional medicine,” said Ashok P. Hinduja, chairman, Hinduja Group India. “We have already acquired half a dozen sites and our countrywide health-care facilities will have a capacity of 2,000 beds.” The hospitals will come up in Delhi, Mumbai, Hyderabad, Bangalore, Nagpur, Surat, and a few other cities and towns.
The Hinduja chain will have a couple of large multi-speciality hospitals, a network of smaller hospitals in various cities, and clinics or day-care centres in small towns. “This joint venture will become one of the biggest projects of Dubai World in India,” said Sultan Ahmed Bin Sulayem, chairman, Dubai World. Hinduja declined to name the location for its first facility that is likely to open in two years.
According to a study by consulting firm A T Kearney, India will require about 200,000 more hospital beds over the next five-six years and a private-sector investment of roughly Rs25,000-40,000 crore. Private hospitals currently generate $15.51 billion in revenues and are likely to rake in $35.9 billion by 2012. A T Kearney was involved in helping the Hindujas draft its strategy for the business.
Numbers such as these have attracted several to the sector. British Health, part of the British Telecom group, is eyeing the segment; New-Delhi based real-estate firm Emaar MGF plans a chain of 50 hospitals; and Apollo Hospitals, Fortis Healthcare, the Omkar Kanwar-promoted Artemis Health Sciences, Max Healthcare and Devi Shetty’s Narayan Hrudalaya have all announced expansion plans.