Creador buys minority stake in Indian hospital chain

Founded in 2006, Paras runs the leading multi-specialty hospital in each of Gurgaon, Darbhanga and Patma, as well as two mother-and-child facilities in New Delhi and Panchkula. In addition to 730 beds, the chain offers secondary and tertiary care services.

The company is looking to continue its expansion with a focus on providing affordable healthcare services to middle-income families across first and second-tier cities. According to Dr. Dharminder Nagar, founder of Paras, 70% of the doctors and hospitals in northern India are located in cities that cater to only 30% of the region’s population.

The healthcare market is also underserved on a national level, with nine beds per 10,000 people compared to a global average of 30 beds. Overall healthcare expenditure has increased at a compound annual rate of 17% of the last 10 years and now stands at $160 billion. This has created numerous opportunities for private sector players.

“The hospital infrastructure and operations are all developed to provide the best healthcare services at affordable costs. In a landscape where 70% of healthcare costs are currently paid out of pocket, the vision and operational aspects of Paras are relevant,” said Anand Narayan, a managing partner with Creador, in a statement.

This is Creador's 24th investment in total and its ninth in India. The private equity firm, which targets growth-oriented businesses in South Asia and Southeast Asia, is currently investing its third fund. The vehicle reached a final close of $415 million in last December.

The Paras investment comes a day after KKR announced it would invest approximately $200 million for a 49% stake in Radiant Life Care with a view to helping the specialty hospital operator expand its network of facilities nationwide.

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• Topics
• South Asia
• Healthcare
• Expansion
• India
• Creador