Medfort Hospitals announces merger with Maxivision

Written by R Ravichandran | Chennai | Updated: Aug 31 2011, 08:53am hrs
Medfort Hospitals, a healthcare provider in the areas of eye and diabetes has announced its merger with Hyderabad-based Maxivision Eye Hospitals (Maxivision), a renowned eyecare chain, to become one of the top three eyecare providers in India. The joint entity, Medfort Maxivision Group, will spearhead its presence across the country and abroad, including in ME, SE Asia, Africa.

The joint entity will be capitalised with an initial amount of R100 crore and the private equity players such as TVS Capital Funds and ePlanet have been investing most part of the R100 crore for a healthy minority stake, said GSK Velu, chairman of Medfort Hospitals.

Kasu Prasad Reddy, chairman and managing director of Maxivision, will become the co-chairman of the merged entity and as a promoter, he will be also investing along with GSK Velu, another promoter, into the merged entity.

Though there have been a number of eyecare hospitals in India, there are only three corporate entities which have a chain of units across the country and the Medfort Maxivision Group is one of the top three in India spread across the country with a combined strength of 15 hospitals across the country, Velu said. Our objective is to take the size to 50 hospitals by 2012-13 and then to 100 over the next two years and the raised funds will be utilised for the same, he said.

We also have plans to make inroads into overseas markets such as West Asia, Africa and South East Asia in the next two years. The first hospital overseas will come up in the UAE in the near future, Velu pointed out. Following the merger, all the eyecare activities of Medfort group have been rebranded as Maxivision Eyecare and Maxivision Lasik Suites across the country, he added.

To a question, he said: The funds which we have raised now are sufficient to meet our immediate expansion target and we will decide on further raising later. We have no plans at this point of time to go for an IPO. He added that Medfort, which also specialises in diabetes treatments at its hospital in Chennai, will add diabetes centres across all hospitals going forward.