Manipal Group, CDC Group join hands for healthcare services

Mumbai: Manipal Education and Medical Group (MEMG) today announced partnership with CDC Group Plc, the UK's Development Finance Institution to invest an initial Rs 500 crore in healthcare services. "A new partnership to invest in healthcare services beyond conventional hospital services, has been launched today by CDC Group Plc and MEMG," a joint statement said.

"The two institutions, have come together to invest an initial Rs 500 crore in innovative opportunities in India, Africa and elsewhere in South Asia, with aspirations to invest even more in the future," it added. The partnership's primary focus will be on building scale through acquisitions and will back entrenched market players and strong management teams. It will support firms that are currently constrained to grow beyond a certain level due to management and financial limitations, added the statement.

The CDC/MEMG platform will provide such companies access to professional management and creating value by being part of a broader network, it added. "While traditional hospitals will continue to deliver high-end care and inpatient services, healthcare providers have realised the need to evolve alternate formats which will complement hospital services and where care can be delivered in 'Out of Hospital' set ups and closer to patients homes," MEMG's Chief Ranjan Pai said.

"The companies we're looking to back will be heavily reliant on new technology to improve quality of service and access," Pai added. Srini Nagarajan, CDC's Head of South Asia said, "CDC is committed to support the growth of the healthcare sector in India because of the jobs created and the innovations that can improve access and bring higher quality care for all patients".