Manipal Cure and Care (MCC), the healthcare retail venture of the Rs 1,300 crore Manipal Group, which had seen investment inflows of Rs 80 crore and Rs 90 crore during 2007-2008 and 2008-2009 respectively, is likely to see investments of Rs 300 crore by 2010. This is likely to revive the fortunes of MCC whose expansion plans have been stymied by the lack of affordable real estate space and other factors.
The group, which till now funded its expansions through internal accruals and borrowings, may go in for private equity funding towards the end of Q3 or the beginning of Q4.
According to Somnath Das, chief operating officer, MCC, much of the earlier capex of Rs 100 crore had gone into building capacity and capability. "We have also been testing out our retail formats," Das said, adding, "And, finding the right location for such a store is the biggest challenge today." MCC, whose fortunes were affected by the sharp rise in the mall rentals could now be able to continue with its plans if the rentals correct.
The Manipal Group had announced in early 2007 that MCC would notch up 50 retail stores within two years. Fast forward to August 2008, and MCC had seen investments of Rs 100 crore; with just six stores to show. Now, by 2010, MCC plans to set up the promised 50 stores.
The company's initial expansion plan has fallen short by half, according to industry observers. From the initial plan to have 12 stores by 2008, MCC has been able to start only six stores.
It's not just the healthcare retail venture of the Manipal Group that has failed to meet initial growth targets. Companies like Reliance Retail subsidiary Reliance Wellness and Fortis HealthWorld (Fortis Group), had in the past announced plans to launch their healthcare retail ventures, but have fallen well short of what they set out to achieve.
MCC Wellness Centers have been envisaged as one-stop retail hubs offering pharmacy, medical consultation, cosmetology, optometry, dentistry, sports medicine and sports rehabilitation under one roof. On Monday, MCC launched its second centre in Bangalore. The company has launched outlets in Mumbai and Pune this year. It will open 3-4 more stores in Bangalore, one in NCR and another in Hyderabad this year.