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Olympus-backed DM Healthcare outlines India spending plans

  • Alvina Yuen
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Olympus-backed DM Healthcare, a Dubai-based healthcare services provider which gets a majority of its business in the Middle East, will invest INR15 billion ($270 million) in India. The company hopes this will help boost overall revenues by 40% to INR23 billion in the coming financial year.

DM Healthcare currently relies on India for 10% of its revenue, Kartik Thakrar, assistant general manager of the medical group, told Live Mint. The plan is for India's contribution to reach 20% by 2017, a which point overall revenues should be INR65-70 billion.

Two-thirds of the INR15 billion will be raised from debt and fresh equity capital. DM Healthcare has already agreed to pay INR1 billion over the next year to convert its 30% stake in Kerala's Malabar Institute of Medical Sciences into majority ownership.

Azad Moopen, chairman of the company, said the hospital is likely to go public in two to three years' time, market conditions permitting.

"We want to have 5,000 beds in India by 2017," Moopen added. "I am being told by our private equity partners that if we want to do acquisitions, funding is not an issue."

In January, Olympus Capital Asia Investments agreed to pay more than INR5 billion for a minority stake in DM Healthcare, facilitating the exit of existing investor India Value Fund.

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