Home / Companies / People /  ‘AHH will continue to grow inorganically’

MUMBAI : Asia Healthcare Holdings (AHH), the TPG Growth-backed healthcare platform that acquires and incubates single-speciality healthcare companies, recently raised $170 million in funding from Singapore’s sovereign wealth fund GIC Pvt. Ltd. In an interview, Vishal Bali, executive chairman, AHH, discusses the platform’s growth strategy. Edited excerpts:


Are there enough inorganic opportunities that AHH is keen to pursue to fuel growth? 

We see AHH continuing to back other single-speciality chains. We continue to look at opportunities in terms of what else we can grow. So, the model that is working very well over here is that we can buy into something relatively small (almost like startups). But we have demonstrated our ability to turn the business around and also grow it simultaneously, which is literally like changing the wheels of a car while it is still in motion. So again, there are opportunities that will be there, and of course, from a backing perspective, TPG Growth has backed us 100% here, and we believe that it will continue. So, I see AHH as a very differentiated single-speciality healthcare platform with the ability to grow multiple enterprises on one platform rather than one business at a time. 

The healthcare sector is undergoing a re-rating of sorts. Do you see similar tailwinds?

Our entire hypothesis has been that there is a great opportunity and scope in this single-speciality arena. We felt that if we put together a platform that was a single-speciality healthcare platform, then on this platform, we could incubate, grow, get capital behind multiple single-speciality enterprises and scale them and grow them. Make them run by stand-alone management teams, where each of them has their CEOs, and then you find answers for their exit. 

Specifically, which area is AHH focusing on? 

I have always believed that there is a great opportunity in the mother and child space. The mother and child speciality, the IVF technologies, paediatrics, all of these bundled together is almost like an $8 billion opportunity, and we felt there is something exciting to be done there. While most players have concentrated on gynaecology and obstetrics, we felt that the chain has to do obstetrics, gynaecology and neonatology. In fact, neonatology is one of the biggest open spaces in India today. We felt a lot more technology needs to be put in place across India in looking after the newborns. 

How are you approaching unit economics and the overall profitability of the business? 

The company has gone through a big change in its unit economics. We now have a presence across the country in both Tier 1 and Tier 2 cities. Our latest group of centres have all come in cities like Salem, Madurai, Varanasi and Ranchi. We are building this out in a big way in Tier 2 cities across the country. This year, the company will do close to about $50 million of revenue. It was about $3.5 million or $4 million of revenue when we started. So, we have created a big niche for Motherhood, continued to grow it, and made it a very powerful enterprise. We have clear-cut strategic thinking and scale that one can create behind the enterprise. But more importantly, also you know having a very focused clinical programme guided by standard operating procedures has led to most centres becoming profitable.

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