Dubai: Dubai-based private equity group Abraaj and a UK development body on Tuesday said they will inject $17.5 million (Dh64.3 million) in an Indian health care business to tap the country’s rising demand for medical services.
CDC and Abraaj will invest money in Rainbow Hospitals, a 450-bed health care facility based in southern India, to allow it to expand its existing operations and build new hospitals, according to an e-mailed statement.
“The current investment would give us the capacity to expand the number of beds available to patients from the current level of 450+ to close to 1,000 by 2017,” said Ramesh Kancharla, chairman and managing director of Rainbow Hospitals.
“With demand expected to grow at around 15 per cent per annum over the next decade, it’s clear that the gap in provision of health care in India will need to be plugged by the private sector,” said Srini Nagarajan, CDC’s regional director for South Asia.
For Abraaj, this is the 28th investment globally in the health care sector. Globally, it manages around $7.5 billion of assets.
CDC is the UK’s Development Finance Institution wholly owned by the UK Government’s Department for International Development.
