HCG buys majority stake in city-based fertility clinic

Close on the heels of the Manipal Health Enterprises announcing its investment of Rs 40 crore in city-based reproductive medicine and men's health specialist Ankur Healthcare Private Limited, the Bangalore-headquartered cancer care specialist HealthCare Global (HCG) today announced that it has bought a majority stake in the Bangalore Assisted Conception Centre (BACC) of Dr Kamini A Rao for an undisclosed sum.

The new entity, called Milann - The Fertility Centre, will now expand into many towns and cities, including Tier-II and Tier-III towns. With Bangalore having some 25 fertility or IVF (In Vitro Fertilisation) clinics, it was only a matter of time before there was a consolidation. BACC has had four centres in Bangalore. The fund infusion is expected to help Milann expand rapidly.

Dr Kamini Rao said: "The Assisted Reproductive Technology (Regulation) Bill - 2010 is a driver of the consolidation being seen in the sector. The Bill calls for certain standards to be maintained by these IVF centres and small players need funds to meet those standards mandated by the Bill. Hence many of them could be trying to beat the Bill which is expected to come up in the Winter Session of the Parliament."

Meanwhile, Dr B S Ajaikumar, chairman and CEO of HCG, said, "With the investment in Milann, it can now expand rapidly by opening many more centres across the country. Capital had been constraint for them till now."

Many of the small players, which are often just a single doctor or a husband-wife team of doctors, have not been able to expand after many of them reaching a critical mass, said sources from the industry. This was the time for many of them to look for buyers, he added.

The consolidation in the IVF sector had earlier been seen elsewhere in the world like Spain, Portugal and elsewhere in Europe, and later in the US about two to three years ago. Now it has begun to happen here in India, Dr Rao said.

HCG today has some 27 hospitals across the country and is in the process of starting another 20 hospitals.