R-ADAG plans to invest Rs 5000 cr. |
The Reliance Anil Dhirubhai Ambani Group (ADAG) is planning a big splash in healthcare services, and has decided to invest over Rs 5,000 crore. |
The plan includes setting up a chain of medicine retail stores at a cost of Rs 1,200 crore, setting up four hospitals for Rs 400 crore each and two medi cities involving initial investments to the tune of Rs 2,000 crore each. |
The four hospitals will be set up in West Bengal, Bangalore, Delhi and Mumbai within the next seven years. The company will also bid for the healthcare cities coming up in Udaipur and Jaipur, with focus on medical tourism. |
Sources close to the developments told Business Standard that Reliance Health Venture's drug retail foray will roll out in a big way nationally within three months. It will acquire or take strategic equities in the existing retail drug chains operating in India and has already bought two small retail chains. |
Advanced negotiations are on to acquire some of the big pharma retail chains. Further, it has tied up with 20-odd drug distributors and associations in various parts of the country. |
Plans are to source drugs directly from the companies and supply to hospital pharmacies and retail medical shops by acting as a 'national distributor' to pharmaceutical and healthcare manufacturers in India and abroad. Reliance Health Venture has ensured 'sole drug distribution rights' with 10 leading pharma companies and is targeting at least 30 more companies. It will also set up 25 fully air-conditioned drug warehouses with advanced infrastructure in different parts of the country. |
The venture will also take up distribution of medical devices, lifestyle products and over the counter (OTC) drugs. Around Rs 200 crore is likely to be earmarked for giving a facelift and creating brand equity for the Reliance Health pharmacies. |
Sources said three to four teams of Reliance Health Venture, headed by Rajendra Pratap Gupta, former CEO of Medicine Shoppe and also executive director and CEO of Medybiz, are working overnight to roll out the national plan. When contacted, Gupta declined to comment. |
In Mumbai, Reliance Health Venture has already acquired the Mandke hospital, which will be converted into a 650 bed super speciality hospital with six divisions. |
About 200 beds will be ready by September and the hospital will be fully functional in 2008. Reliance Health Venture has acquired land in West Bengal and Delhi to set up greenfield super speciality hospital projects. |
Reliance Health also has placed bids with the respective state governments for the health city projects proposed at Jaipur and Nagpur. About 100 to 250 acres each will be acquired for the project, which will attract investments in medical tourism. |