Medfort to invest up to $50 mn in expansion

Medfort Hospitals, a healthcare company focusing on diabetes and eyecare, plans to invest $40-50 million over the next two to three years in organic and inorganic expansion. The company plans at least two major acquisitions in the range of $25-30 million in its focus segments.

The company would raise $40-50 million through debt fund and from its existing promoters to support the expansion, said Gaurav Malhotra, chief executive officer, Medfort Hospitals. In Novermber, the company had raised funds of around Rs 60 crore from TVS Shriram Growth Fund (TSGF) and E Planet Ventures.

“We are looking at both brownfield and greenfield expansion. There would be at least two major acquisitions in the range of $25-30 million. Our vision is to become one among the top three player in eyecare and diabetes care business in next two to three years,” he said.

It is finalising an acquisition at present and would also look at small scale acquisitions as part of expanding its presence in the country.

Medfort Hospitals, which has so far opened a centre in Chennai and five in New Delhi, is looking at establishing around 40-50 centers through out the country in next three years. It has plans to open centres in Maharashtra, Gujarat, Andhra Pradesh, Punjab, Haryana, Rajastan, Karnataka and Tamil Nadu by the time.

Further, its first overseas project to set up an eye care centre in United Arab Emirates (UAE) in collaboration with Ras Al Khaimah Hospital, UAE and Hyderabad-based L V Prasad Eye Institute, would be launched in next five months' time. The company would expand its operations in all the seven emirates in UAE, he added. It also has plans to set up operations in Africa and is in discussion with local players for tie up.

GSK Velu, managing director of Trivitron Group, holds the majority shares of Medfort while TSGF, through acquiring stakes last November, became second significant shareholder in the company and Eplanet Ventures holds the minority stake.