HealthCare Global Enterprise Limited (HCG), a Bangalore-based pan-India chain of super-specialty cancer care hospitals, is planning to expand its network to 40 centres by 2014, with an investment of Rs 100 crore.
HCG, at present, has around 24 centres in India and one each in Uganda and Nairobi. It has plans to open four to five centres in metro cities, and around 10 in Tier-II and Tier-III cities by 2014, said Dinesh Madhavan, director (marketing) of HCG.
“Investment in each centre may vary according to the model we choose, including tie-ups with oncologists for setting up full-fledged centres. We are planning to invest Rs 50 crore through internal accruals and raise another around Rs 50 crore from private equity for the expansion,” he said.
A full-fledged centre could cost Rs 20 crore for the company, owing to the higher cost of sophisticated equipment and technologies.
Already, Premji Invest, the private equity fund of Azimji Premji, Milestone Religare and Evolvence India Life Sciences Fund have together invested an aggregate amount of around Rs 150 crore in the company.
Also Read
“We have different options to raise funds – from private equity players, from our technology partners or oncology experts who are in partnership with us,” Madhavan said.
The company is also contemplating going in for an initial public offering (IPO) by 2014 to raise funds to the tune of around Rs 500 crore. The IPO plans, however, are not yet finalised.
HCG is also exploring opportunities to own or manage oncology divisions in tie-up with various major hospitals. Various measures, including an EMI scheme, were designed to provide cancer care at affordable costs, Madhavan said. Established almost five years ago, the company currently has revenues of around Rs 350 crore. It is targeting to grow its revenues to Rs 500 crore by 2014.
