Adani plans $4bn in healthcare

Mumbai : Gautam Adani, the fifth richest person in the world, is investing massively in the healthcare sector and large hospitals, diagnostic chains, and offline and digital among other assets to set two people straight in the sector Pharmacy can be acquired. Briefed about the plans of the group.

Top executives of the group, which runs businesses from airports to seaports, recently met with several foreign banks and global private equity investors, where they outlined the group’s plans in the healthcare business, the people named. Said requesting anonymity, as plans are private.

“The Adani Group is in discussions with some globally renowned names in the healthcare sector for a joint venture or tie-up for the India market, and an announcement may be made soon,” said one of the two people. The business has invested up to $4 billion in a mix of debt and equity and is in talks with investors and lenders to develop a long-term financing plan.”

An email query to an Adani Group spokesperson remained unanswered till press time on Sunday.

The second person said, “Adani has recognized healthcare as a huge opportunity and is keen to consolidate that space, which is fragmented with a market dominated by local and regional players, of whom a large number of different Struggling for reasons.” A significant amount of private equity capital invested in the healthcare sector, a good chunk of which is ripe for exit and could provide a buying opportunity for the group,” the person said.

Several factors are driving the growth of the Indian healthcare sector, including extremely low hospital beds per 1,000 population, an increasing number of people over the age of 60, a large middle class population, and an increase in lifestyle diseases. growth is included.

“The group is keen to develop a line of consumer-facing businesses and is part of the healthcare strategy,” the first person said. The government has announced several policy initiatives, including production-linked incentives, to attract investment in the healthcare sector. Schemes for promotion of domestic manufacturing of pharmaceuticals and medical devices.

The home healthcare sector, especially the online pharmacy sector, has seen an increase in mergers and acquisitions over the past two years.

In August 2020, Mukesh Ambani’s Reliance Industries acquired a majority stake in online pharmacy Netmeds (Vitalic Health Pvt. Ltd). 620 crores. Tata Digital Limited, a unit of Tata Sons Private Limited, in June last year. Ltd. bought a majority stake in digital health company and e-pharmacy 1MG Technologies Pvt. Ltd.

API Holdings, parent of online pharmacy retailer Pharmacy, bought a controlling stake in Thyrocare Technologies 4,546 crore in a single month. In August, US online retail giant Amazon launched its online pharmacy in India.

Established in 1988, the Adani Group is one of India’s largest business conglomerates, with revenues exceeding $20 billion. It has a presence in electricity, green energy, infrastructure, food processing and airports.

Mint reported on April 27 that the group is one of the major contenders to acquire Swiss cement maker Holcim Group’s India operations—Ambuja Cements Ltd. and ACC Ltd., which are valued anywhere between $10 and $15 billion.

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