Dr Agarwal’s raises Rs 215 crore from CDC for expansion

By: |
Chennai | December 19, 2019 3:12 AM

This fourth round of fund raising follows Rs. 270 crore funds raised each from ADV Partners in 2016 and Singapore-based Temasek earlier this year.

Both ADV and Temasek hold minority stakes in the company

India’s leading eyecare hospital chain Dr Agarwal’s Healthcare (DAHCL) has raised Rs. 215 crore of debt from UK-based development finance institution CDC Group to expand its geographical footprint across India, Africa and South Asia, along with significant investments in latest technology for super specialty eye-care.

The company also entered Maharashtra with the acquisition of Advanced Eye Institute in Navi Mumbai and said that it will be investing Rs. 500 crore over next two to three years to expand its footprint, primarily in the tier-II and III cities, said Amar Agarwal, chairman, DAHCL.

This fourth round of fund raising follows Rs. 270 crore funds raised each from ADV Partners in 2016 and Singapore-based Temasek earlier this year. Both ADV and Temasek hold minority stakes in the company, Agarwal added.

“Since we became a zero-debt company by clearing our debts with both Edelweiss and HDFC (close to Rs. 200 crore) sometime ago, the company has decided to raise fresh funds through debt in nature from CDC than equity. With this fresh funds, we will be adding 60 more hospitals — both in terms of brownfield and greenfield — over the next two to three years to take the total to 150 hospitals from 90 hospitals now,” Agarwal told the FE here. This is the first time that CDC is investing in an eyecare hospital chain in India, he added.

“We have plans to set up 10 hospitals in Mumbai and another 10 in Maharashtra, including cities such as Solapur, Nagpur, Nasik among other cities,” Agarwal said. Of the proposed addition of 60 hospitals, the company will set up 6 more hospitals in the African region, taking the total to 20 hospitals in this region. “We are also looking at entering into Middle East and other neighbouring countries,” he said.

According to Agarwal, with this expansion, the number of patients in the group’s hospitals will double to 30,000 a day in next two to three years and the overall footfall will equally be doubled to 100,000 a day. Simultaneously, 60 more pharmacies and optical stores will be added to take their total to 150 each, he added.

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