Bangalore-based Nova Medical Centers Private Limited, a standalone ambulatory surgery group, is planning to invest Rs 500 crore to expand its operation. The company would be setting up 25 daycare surgical facilities across India and West Asia by 2013.
Nova is part funded by Global Technology Investment group (GTI), a New York-based private equity firm.
Mahesh Reddy, co-founder and executive director, Nova Medical Centre, said, “Around Rs 100 crore will be from internal accruals — from the existing investors including GTI and myself — and the rest Rs 400 will be raised from investors. We are in discussion with various venture capital firms.”
Nova currently has six clinics in Delhi, Mumbai and Bangalore. It recently tied up Dr Ramayya’s Pramila Hospitals to set up a daycare centre at Hyderabad in the next 3-4 months.
The company started operations in 2009 with a new model of ambulatory surgery or the day-care medical centre, which carries out noncritical procedures like cosmetic, eye, gynecology, and provides surgical care, OPD, health checkup, pharmacy and radiology services.
The concept started in the US three decades ago. Around 70 per cent of surgeries in the US are held at daycare centres whereas in India, the concept is slowly catching on, he said.
Each facility has 3-4 operation theatres, consulting rooms, imaging, pathology laboratory and pharmacies with all the necessary equipment, staff and doctors.
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Each centre with around 20,000 sft area and 20-25 beds costs Rs 10-15 crore, as against a corporate hospital, which costs between Rs 100 crore and Rs 200 crore.
According to a recent study, around 46 per cent of people travel some 100 km to get the proper healthcare.
“Our next step will be to open clinics in Tier II and Tier III cities. We started out with metros for a more visibility and awareness, and in the next phase, we will mainly focus on the semi-urban areas,” Reddy said. Of the 25 centres, 8-10 would come up in Tier II and Tier III cities.
Nova is also tapping the West Asian market. It recently tied-up with OMZEST Group, a 51-49 per cent partnership, to set up ambulatory surgery centres in Dubai, Muscat, Abu Dhabi and Riyadh.
It is scouting for partners in Europe to bring their expertise and technology for setting up in-vitro fertilisation (IVF) clinics in India.
“We are in discussion with two healthcare majors in Australia and Spain for the partnership. We will finalise in the next one month. We have plans to set up 20 clinics in the next three years,” he said.