Gautam Adani has been in the news of late. The Indian business mogul has recently become the fifth richest person in the world. Adani, who is the chairperson of the Adani Group, is now planning to expand his business with massive investments in the healthcare sector. According to a report by Mint, he is planning to establish a foothold in the sector and may acquire large hospitals, diagnostic chains, and offline and digital pharmacies. However, it is pertinent to mention that the Adani Foundation has been long focusing on the well-being of the less privileged by providing health facilities through its hospital and mobile health care units. After spending more than a decade in this sector, it recently acquired a minority stake in a startup that has launched a robotic surgery platform. Now, it is planning a big push in health care.
According to people privy to the development, top executives of the group recently met several foreign banks and global private equity investors. During the meeting, they discussed the group’s plan in the healthcare business.
“The Adani Group is in discussion with a few globally renowned names in the healthcare sector for a joint venture or a tie-up for the India market. The announcement in this regard may happen soon. The group has earmarked up to $ 4 billion in a mix of debt and equity for the business and is talking to investors and lenders to devise a long-term funding plan,” a person was quoted as saying in the report.
However, it is not new territory for the Adani group as it has already a decent presence in the health sector and holds a significant amount of experience in running health care facilities. Gujarat Adani Institute of Medical Sciences (GAIMS) and G.K. General Hospital (GKGH) is a testimony to the group’s intention.
Hospital Run By Adani Group
GAIMS is the first Public-Private-Partnership (PPP) endeavour between the Government of Gujarat and the Adani Education & Research Foundation. It is the only Medical College and Multi-Specialty Modern Teaching District Hospital in the Kutch district of the state. It was established in 2009. GAIMS is part of Adani Group’s Corporate Social Responsibility initiatives and is managed by Adani Education & Research Foundation, under the umbrella of the Adani Foundation. GKGH is the attached teaching hospital which is the only multi-specialty modern teaching district hospital in Kutch. The campus spreads across 27 acres of land.
The hospital caters to more than 2,000 patients daily. While OPD is at approximately 1500 patients per day, IPD is at approximately 500 patients per day. It provides treatment to all classes of patients particularly the poorest of poor patients. It has a more than 750 beds capacity, over 14 Operation Theatres, various Intensive Care Units – ICU, PICU, NICU, ICCU, RICU, MICU, SICU.
GAIMS is recognized by the Medical Council of India (MCI) for the Undergraduate course Bachelor of Medicine and Bachelor of Surgery (MBBS) with an annual intake of 150 seats. Also, GAIMS is permitted by MCI for 15 different MD/MS Post Graduate courses with a total annual intake of 51 seats in various specialties.
Mobile Health Care Units
Adani Foundation believes that the good health of people is critical for the development of a nation. Keeping this in mind, it also runs Mobile Health Care Units (MHCUs) across the nation, hospitals, and clinics. It has 17 MHCUs that are attending over 4 lakh patients annually, Also, rural clinics of the foundation are treating more than 30,000 patients every year. Various Medical Health Camps provide diagnostic and treatment facilities to more than 51,000 patients annually.
It also organizes general as well as specialized health camps. The foundation also provides special support to the differently-abled and elderly under it corporate social responsibility (CSR).
Acquires Minority Stake In Robotic Surgery Startup ForSight
The group’s intention became quite clear last month when Adani Global Limited – Mauritius acquired a minor stake in ForSight Robotics – a startup that has launched a robotic surgery platform with the aim of transforming the future of ophthalmic surgery. The cost of the acquisition is USD 20 million.
It is pertinent to mention that ForSight is developing the first hybrid intraocular robotic ophthalmic platform to advance ophthalmic surgery for a wide range of conditions including Cataract, Glaucoma, and retinal diseases.
Huge Scope Of Growth
The Indian healthcare sector has a huge scope of growth because at the moment there is only one hospital bed available per 1,000 population. A growing number of people aged above 60 years, a large middle-class population, and a surge in lifestyle diseases are also driving the growth of this sector in India.
“The group is keen to develop a line of consumer-facing businesses and the healthcare foray is part of the strategy,” a person said.
It is also important to mention that the domestic healthcare sector, especially the online pharmacy space, has witnessed a surge in mergers and acquisitions in the past two years.
In 2020, Mukesh Ambani’s Reliance Industries acquired a majority stake in Netmeds, an online pharmacy, for Rs 620 crore. Last year, Tata Digital Ltd, which is a unit of Tata Sons Pvt. Ltd, bought a majority stake in digital health company and e-pharmacy 1MG Technologies Pvt. Ltd.