Paras Healthcare raises Rs 275 crore for expansion & consolidation

In an endeavour to tap the huge potential in the healthcare delivery, especially the needs of growing middle class, the Paras Healthcare is set to expand and consolidate its operations across India


New Delhi: Gurgaon based leading healthcare provider, Paras Healthcare has raised Rs 275 Crore through an affiliate of Creador III LP (Creador). The North India focused healthcare chain has associated with the private equity firm to raise long term investments for growth and expansion. With this capital, the 730 beds strong Paras Healthcare aims at achieving its expansion plans and supporting the existing units for capacity expansion. Incorporated in 2006 by Dr Dharminder Nagar, Paras Healthcare has demonstrated strong growth and profitability over the years with a mix of greenfield, brown field and asset light modelled strategiesfor hospitals and is all set to strengthen its footprint in North India.

Paras Healthcare presently has two divisions– Paras Hospitals at Gurgaon, Patna and Darbhanga, providing specialised tertiary care and Paras Blissat Panchkula and New Delhi, providing specialised Mother & Child Care.

According to Dr Dharminder Nagar, Managing Director of Paras Healthcare, “Each hospital of Paras aims at being a community player by empowering the common man, the middle class, with access to specialised care at locations that has limited or no specialised healthcare facilities. Our endeavours in Bihar illustrate our ideation. Paras Healthcare today is the largest healthcare provider delivering comprehensive multi super specialty care in Bihar and our hospital in Darbhanga is the only super specialty corporate hospital in the Mithila region. With Creador’s support we aim to make our vision of envisaging a healthcare revolution in North India a reality.”

In this financial year, Paras Healthcare is stated to commission two units – 220 bedded tertiary care hospital with comprehensive cancer care -Paras Hospitals at Panchkula and a 50 bedded Mother and Child Care Centre , Paras Bliss at Noida. The healthcare provider aims to add over 1000 beds presently through a mix of new greenfield, leased and acquisitions. The announcements shall be made over the course of the current and next financial year.

According to Mr Anand Narayan, Managing Partner Creador Advisors India LLP, “Paras Healthcare is indeed a differentiator in healthcare that has the middle class as its target group. The hospital infrastructure and operations are all developed to provide the best healthcare services at affordable costs. In a landscape where 70% of healthcare costs are currently paid out of pocket, the vision and operational aspects of Paras Healthcare are relevant. We are certain that this association shall be fundamental in the evolving landscape of Indian healthcare. Moreover their presence in Bihar already elucidates their aim and execution capabilities of providing quality super specialty medical care even in the hinterlands of the country. We look forward to assist Paras in their next phase of growth.”

The exclusive financial advisor for this transaction was Avendus Capital and Khaitan & Co was the legal counsel.

The healthcare has become one of India’s largest sectors – both in terms of revenue and employment.The overall Indian healthcare market is worth around US$ 100 billion and is expected to grow to US$ 280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 per cent of the overall market.

India requires 600,000 to 700,000 additional beds over the next five to six years, indicative of an investment opportunity of US$ 25-30 billion. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in near future.