K M Cherian, a noted cardiac surgeon and founder of Frontier Lifeline Hospitals, is in talks with many foreign institutions to raise about Rs 500 crore for setting up Frontier Mediville, India's first medical science park.
The proposed fund will be used to complete the second phase of Mediville. At present, Rajasthan Venture Capital Fund (RVCF) holds 11 per cent in the project.
The Rs 1,000-crore Frontier Mediville is spread over 360 acres and located 40 km away from Chennai at Elavur village in Tiruvallur district. The first phase is complete and will start functioning in a couple of months. The promoter and his family own 73 per cent of the shares. Another 16 per cent stake is with the Technology Development Board of the department of science and technology. RVCF has 11 per cent.
The first phase will have training and research centres, along with facilities for clinical and pre-clinical research, stem cell, nano technology and tissue engineering. Of the Rs 175 crore for the first phase, banks loaned Rs 90 crore, Rs 15 crore was raised from RVCF and the rest came from the promoters. RVCF has invested in this company through its Rs 200 crore SME Tech Fund.
Cherian, chairman and chief executive officer, said: "We are in discussion with several universities, as well as pharmaceutical companies in the US and UK. Though we look for private equity and other financial investors, we prefer someone from the healthcare background." Teams from the US, UK, Russia and Australia have visited the village and are evaluating investment options, he added. According to Cherian, the promoters are likely to dilute 20-23 per cent stake for the fundraising.
The second phase will consist of a 750-bed general hospital, a 1,000-bed hospital where treatment will be available in traditional and alternative medicinal technologies such as ayurveda, naturopathy, and siddha.
It will also have a vendors' park and a golf course.
Part of the Mediville project, including the bioscience park, has been accorded the status of a Special Economic Zone for the biotechnology sector.