DM Healthcare to expand in GCC, India

Dubai: DM Healthcare Private Limited, a leading health care services provider in the Gulf Cooperation Council (GCC), said it is going ahead with its ambitious plans to set up health care facilities across the Gulf and India.

The company is celebrating its silver jubilee this year with the launch of its ‘Care Beyond Boundaries' initiative as part of its celebrations.

The initiative will run throughout the year offering various services and undertakings to offer support to the community. Under the ‘Care Beyond Boundaries' banner, DM Healthcare plans to undertake various initiatives to promote healthy living in the community.

Established in 1987, the Dubai-based company is setting up a large quaternary care hospital with complex and specialised care in Kochi, in the Indian state of Kerala, which will attract patients as well as doctors from India and abroad.

The project, named Aster Medcity, will have a core hospital and nine centres of excellence and will be one of the top health care destinations in the country. It is expected to commence operations in 2013.

The DM network presently consists of more than 125 establishments, providing primary, secondary and tertiary health care with management and consultancy services, treating more than 20,000 patients per day. The group is in the midst of an exponential expansion in the GCC and India with the number of units set to grow to 300 by 2015 with investments of $500 million (Dh1.836 billion) across the Middle East and India.

Last month Olympus Capital Asia Investments Limited (OCAI) announced the investment of over Rs5 billion for a significant minority stake in DM Healthcare. OCAI is an international investment company backed by funds managed by Olympus Capital Holdings Asia, collectively known as Olympus Capital.

Olympus Capital is a regional middle market private equity firm with 15 years of experience across Asia including India, where it has been investing since 1999.

As a result of this investment, Olympus Capital will become the company's largest external investors and the existing promoters will continue to be the largest shareholders in the company. Olympus Capital nominees will also join the board of directors of DM Healthcare.

The transaction is a combination of Olympus Capital's primary investment into DM Healthcare for the growth and expansion of the company in India, and secondary purchase of a portion of India Value Fund's shareholding in the company.

Gaurav Malik, Managing Director of Olympus Capital, said, "DM Healthcare is addressing the challenge of providing world-class health care services in the rapidly growing markets of India and the GCC countries.

Dr. Azad Moopen, who continues to hold the majority stake in the company, commented, "We remain optimistic about the business prospects of the health care sector and along with India Value Fund are delighted to partner with Olympus Capital. With the strong support of our investors and our experienced management team, I am confident that DM Healthcare is positioned for continued growth in the health care sector in both India and the GCC region."

A market leader in the GCC countries, DM Healthcare owns and operates the largest network of hospitals, clinics and pharmacies in the UAE under the "Aster" and "Medcare" brands, and also has significant operations in Qatar, Oman and Saudi Arabia.

DM Healthcare also has a significant presence in India, with currently over 900 operating beds, primarily in Tier 2 and Tier 3 cities. In addition, DM Healthcare will set up greenfield projects and partner with smaller hospitals across other Tier 2 and Tier 3 cities in India, with a target of having close to 3,000 beds by 2015.