Manipal Cure and Care (MCC), the erstwhile healthcare retail venture of the '1,300 crore Manipal Group, has been merged into the hospital chain. The MCC’s clinics have been absorbed into the Manipal Health Systems or the now rechristened Manipal Health Enterprises Ltd (MHEL).
The MCC Wellness Centres were envisaged as one-stop retail hubs offering pharmacy, medical consultation, cosmetology, optometry, dentistry, sports medicine and sports rehabilitation under one roof. MCC, at the time of its absorption into the hospital fold, had only three centres. It had planned to open outlets in Mumbai and Pune sometime in 2008-09. It had also planned to open 3-4 more stores in Bangalore, one in NCR and another in Hyderabad.
Unaffordable real estate spaces, market conditions and inability of wellness clinics to develop as a viable business model stymied the MCC’s expansion plans. The venture had seen investment inflows of '80 crore and '90 crore during 2007-2008 and 2008-2009 respectively, and the group had envisaged investment plans of '300 crore by 2010.
However, the clinics today are no more than mere extension clinics of the flagship hospital. While earlier the clinics had dedicated doctors, they now see visits from doctors of Manipal Hospital.
Some of the expansion plans of MCC had either not taken off, or had to be abandoned mid-way. The reason, according to people close to the development, was the lack of a hospital attached to it.
A pureplay wellness centre could not succeed, as many other business groups that ventured into the line of business learnt it the hard way. All of them had to give it up as fast as they started. The recent economic slowdown too played a role in ensuring the business model’s early demise.
Meanwhile, the MHEL was formed following a restructuring in the company where the Manipal Group has set up two companies — one, a company to operate the hospitals i.e. MHEL,and another that will manage the properties.
According to conservative estimates, the group is said to have assets of over Rs 5,000 crore.
According to unconfirmed market reports there are about 60 properties in healthcare of the group.
“The restructuring will make the group more efficient in delivering healthcare while helping it raise funds. This will help the company develop more properties,” said Rajen Padukone, chief executive officer of the to be renamed Manipal Health Systems.
According to market sources the hospital-running company is set to be christened Manipal Health Enterprises Ltd.
