- US$21m (INR 139 Crores) investment in Asian Institute of Medical Sciences will bring improved healthcare and new jobs to India’s underserved states –
CDC Group plc, the UK’s development finance institution, has today demonstrated its continued support for economic growth and development in India by announcing a new investment in the healthcare service provider, Asian Institute of Medical Services (“Asian”).
Established in 2010, Asian is a 775-bed hospital operator focused on bringing multi-specialty facilities including cardiology, oncology, critical care and orthopaedics to underserved cities in Northern & Central India.
CDC’s long-term investment will support the company’s five-year expansion into tier 2 and 3 cities in Jharkhand, Bihar and Uttar Pradesh, where it will add 1000 beds at new and existing multi-specialty sites. This expansion will create around two thousand new jobs and deliver training and improved skills for nursing and paramedic staff in these cities.
Welcoming the investment in Asian Institute of Medical Services, CDC Managing Director and Head of South Asia, Srini Nagarajan said:
“We’re pleased to be able to support a healthcare company that will reach patients that currently have to travel many hours to large cities like Delhi and Calcutta to receive the treatment they need. Our investment in Asian will increase access to high quality care in poorer and under-served cities in Northern and Central India. It will also create many jobs and training opportunities in these cities.”
Asian Institute of Medical Services Founder, Dr. N K Pandey added:
“At Asian, we firmly believe that quality healthcare is a basic need and it needs to be delivered closer to where there is need and not only in big metropolitan centres. We already have our footprint in tier 2 and tier 3 towns. Our association with CDC is going to support us in expanding our services further in states like UP, Bihar and Jharkhand.
“As a responsible organisation, we are keen to make an impact in these areas by not only providing healthcare but also creating opportunities for local employment, platforms for skill development like courses for nurses and paramedics and through outreach programs. Associating with a developmental organization like CDC, gives wings to our dreams.”
CDC is an experienced investor in Indian healthcare having backed Narayana Health, Rainbow Hospitals and Manipal-CDC Ventures in the last three years. In June 2017, alongside Imperial College London, CDC launched a framework to enable private healthcare providers, investors and policymakers in low and middle income countries to better understand and track the impact of their investments, including on their broader healthcare systems. CDC’s investment in Asian is the first time that CDC has applied the new framework in assessing an investment.
Asian currently runs three tertiary care hospitals in Faridabad(Haryana), Moradabad (Uttar Pradesh) and Dhanbad (Jharkhand)), two secondary care hospitals in Yamuna Vihar (Delhi) and Sambhal (Uttar Pradesh); and three health clinics in Faridabad, Palwal (Haryana) and Gr. Kailash. The company will add up to 1000 beds through its existing facilities in Moradabad and Dhanbad and in new facilities in Haryana, Bihar and Jharkhand.
CDC has committed to working closely with the company to help it raise its standards and will look to support Asian with resource efficiency improvements including wastewater, water and energy efficiency.
CDC joins existing investor Orbimed, a c. US$15bn AUM healthcare investor with a strong track record in India who will continue to hold their stake.
CDC Group plc is the UK’s development finance institution. Wholly owned by the UK Government, it invests in sub-Saharan Africa and South Asia with the aim of supporting economic development to create jobs. CDC Group plc has invested in India since 1987.
CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £4.8bn.Find out more at www.cdcgroup.com