Abraaj invests in Pakistani diagnostics business
The Abraaj Group has invested an undisclosed sum in Islamabad Diagnostics Centre (IDC), an affordable health diagnostics provider with 20 facilities in Pakistan.
The private equity firm will help IDC build out its network - the goal is to reach 50 centers in the next five years - develop partnerships with government and private hospitals, and expand its service offerings. Bolt-on acquisitions will also be considered, and steps will be taken to professionalize management and improve procurement processes.
Founded in 2003 by Dr. Rizwan Uppal, assistant professor of medicine at Nafees Medical College, and his two brothers, IDC currently operates in Islamabad, Rawalpindi, Wah Cantonment and Hasanabdal. It wants to boost its presence in Islamabad, Rawalpindi and additional cities in Punjab province. The company employs 350 staff and is known for its imaging technologies, laboratory tests and quick turnaround times.
According to an Abraaj statement, Pakistan's public healthcare system is underfunded and ill equipped to meet the needs of the 180 million population. Up to 87% of healthcare spending is funded out-of-pocket. The diagnostics market is extremely fragmented: there are fewer than 6,000 service providers nationwide and only 10 companies have networks of more than 20 centers.
"Increased healthcare awareness and a growing requirement for detecting lifestyle diseases is increasing the demand for diagnostics services across Pakistan. IDC is clearly positioned to capitalize on this growth, through its world class infrastructure and diagnostics technology, and its competent management team," said Hisham Moussa, managing director at Abraaj.
IDC represents the private equity firm's first investment in the Pakistan diagnostics space and its fifth in the country as a whole. In October of last year, Abraaj agreed to sell a 66.4% stake in Pakistani utility K-Electric to Shanghai Electric Power (SEP), a subsidiary of China's State Power Investment Corporation, for $1.77 billion.
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