Trichy-based Sri Kauvery Medical Care (Trichy) Pvt Ltd plans to set up 1,000 beds in Tamil Nadu in the next three years. For the expansion, involving an investment of Rs 100 crore, the company would go for a second round of private equity funds.
“We plan to set up four to five hospitals with around 200 beds each in Tier I, II cities in Tamil Nadu,” said S Manivannan, joint managing director, Kauvery Hospital.
Without revealing the exact amount it plans to raise from the PE route, Manivannan said: “The Rs 100 crore investment would be a staggered investment and a mix of equity and debt.”
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According to him, the immediate focus of the expansion would be to target presence across new cities in Tamil Nadu.
He was speaking to Business Standard on the sidelines of a session on Indo-US collaboration in healthcare sector, organised by the Confederation of Indian Industry (CII).
It had raised the first round of funds from India Venture Partners, the healthcare PE arm of the Piramal Group.
According to reports, the PE firm had invested around Rs 90 crore for picking up a stake of around 30 per cent. The fund raising was part of the company’s plans to expand its presence and new facilities.
Backed by Piramal Group’s India Venture Partners, Sri Kauvery has 750 beds in three hospitals in Trichy, and one in Chennai. The hospital chain has a turnover of Rs 100 crore and expects it to grow to Rs 400-500 crore in next three years.
