Apollo Hospital unit sells 29% stake to World Bank arm, raises Rs 450 cr

Apollo Hospital unit sells 29% stake to World Bank arm, raises Rs 450 cr

Apollo Health and Lifestyle (AHLL) a wholly-owned subsidiary of Apollo Hospitals Enterprise, focusing on retail healthcare segment, has raised R450 crore by selling 29% equity stake to World Bank arm International Finance Corporation (IFC) and IFC Asset Management Company.

This investment will fuel AHLL’s expansion plans and fulfill its vision of bringing healthcare of international standards within the reach of 20 million patients each year by 2020. Apollo Hospitals has invested R500 crore in AHLL and the fresh infusion of R450 crore from IFC would take care of its growth plans for the next 24 months.

AHLL operates a range of formats that fill the space between home care and tertiary care hospitals. AHLL currently operates multi-specialty clinics (Apollo Clinics), diabetes clinics (Apollo Sugar), diagnostics (Apollo Diagnostics), dental centres (Apollo White), dialysis, women and children hospitals (Apollo Cradle), fertility centres (Apollo Fertility) and surgical centres (Apollo Spectra) across India, in 17 states and having over 400 customer touch points.

“AHLL will use IFC’s equity investment to expand its network of clinics, cradle and diagnostics centres across India. The investment will create multiple job opportunities across India for healthcare professionals, including doctors, nurses, and technicians,’’ Sangita Reddy, joint managing director, Apollo Hospitals Enterprise said. “Through this investment, AHLL will continue to expand through both organic and inorganic means and is committed to enhancing the patient experience and medical care offered by the current network,’’ she added.

AHLL operates across seven verticals and has multiplied its network and revenues over the past three years. “In the next five years, we are looking at growing our revenues significantly and expanding our network, particularly of Apollo Clinics, Apollo Diagnostics and Apollo Cradle,’’ she said.

“This investment is probably the largest ever private equity growth capital investment in the primary healthcare segment in India. We currently serve over 10,000 customers daily and with this next round of expansion, we shall be able to extend the Apollo brand of clinical expertise and ‘tender loving care’ to many more people in the cities we serve and also extend to new cities,” she added.

“Our investment in Apollo reflects our commitment to private sector supporting the delivery of better health outcomes. It addresses issues of access, quality, and affordability across the country,” said Henrik Elschner Pedersen, IFC senior manager – Consumer and Social Services – Asia.