Consortium led by KKR & Co plans to invest Rs500-600 crore in Apollo Hospitals: report
05 Sep 2013
A consortium led by US private equity firm KKR & Co is planning to invest Rs500 - 600 crore ($74 million - $88.80 million) in Chennai-based Apollo Hospitals, The Economic Times today reported, citing a banker close to the deal.
The consortium, which may include a sovereign wealth fund, will invest the funds through quasi-equity instruments, the report said.
Apollo Hospitals, controlled by Dr. Prathap Reddy, is likely to use the money to part-fund its expansion plans and cut debt.
"The proposed deal provides an opportunity to partner with the Reddy family for the growth of the healthcare business,'' the banker told the ET.
In 2010, Dr. Prathap Reddy had said that Apollo Hospitals plans to invest Rs3,000 crore for its expansion plans by 2014, with the objective of adding 4,000 beds.
Apollo is also planning to set up hospitals in smaller cities and towns over the next three to five years.
Founded in 1983 by Dr. Prathap Reddy, Apollo Hospitals is one of Asia's largest healthcare groups with over 8500 beds across 50 hospitals, and a significant presence at every point of the medical value chain.
Started as a 150 bed hospital, today the group has grown both in India and overseas, with hospitals in Sri Lanka, Bangladesh, Ghana, Nigeria, Republic of Mauritius, Qatar, Oman and Kuwait.
It is also the largest telemedicine provider in India with 71 centres.