Uttar Pradesh's largest healthcare chain, Regency Healthcare announced that it has raised approximately US$ 14 million from a consortium of leading global investors, IFC, Healthquad and KOIS. The healthcare chain will utilize this corpus to fund its expansion in the state and offer quality healthcare services at an affordable price. This is possibly the first investment by any private equity fund in a UP based company.
Dr. Atul Kapoor, Chairman and Managing Director, Regency Healthcare, said: "The healthcare sector in Uttar Pradesh has received a shot in the arm with this investment and our effort to grow quality healthcare business in the state of Uttar Pradesh has received a much-needed boost. Regency has a clear plan to grow to 1500 beds and consolidate its position as a leader and preferred healthcare provider to patients across the state of Uttar Pradesh."
He added, "Over the course of the next two years, we plan to invest in excess of INR 350 Cr to add new hospitals and clinics across important locations in Central and Eastern UP, besides equipping them with advanced clinical and technological capabilities. We also plan to add 15 new dialysis treatment centres, for which we have an exclusive joint venture with Fresenius, world's leading kidney care player."
Established in 1995, the Kanpur based healthcare company currently operates one of the oldest and the largest multi-speciality hospitals, the flagship 200 bed Regency Hospital that treats over 270,000 patients every year. It also operates UP's leading renal sciences hospital in the same city. Further, Regency has recently commissioned the state's largest full-service standalone oncology hospital, in a joint venture with HCG that is equipped with the latest radiation, True Beam, and PET-CT technology and operates 125 beds.
"IFC supports Regency's mission to provide access to affordable, quality healthcare in the under-served and densely populated state of Uttar Pradesh," said Matt Eliot, IFC's Principal Investment Officer. "The private sector, in partnership with global investors, has a significant role in addressing India's healthcare challenges," he added.
Dr. Amit Varma, Sponsor of Healthquad, said, "Regency represents a unique opportunity to work with a strong clinical and management team to improve the access to high quality care across a trusted hospital network in India's largest state of Uttar Pradesh. The thrust to provide best infrastructure and technology at an affordable price point will deliver the much needed benefit and outcomes to all the stakeholders."
Adding to that, Charles Antione Janssen of KOIS stated, "We have reposed our confidence in Regency to be at the forefront of providing the best medical service to the population of Uttar Pradesh. Uttar Pradesh seems to have been neglected by leading private players and in the process left a fertile ground for a local player like Regency to create an impact driven healthcare model."