Paras Healthcare Raises Rs 275 Cr through Creador, Plans for Expansion & Consolidation

Paras Healthcare presently has two divisions– Paras Hospitals at Gurgaon, Patna and Darbhanga, providing specialised tertiary care and Paras Blissat Panchkula and New Delhi, providing specialised Mother & Child Care.

Gurgaon based leading healthcare provider, Paras Healthcare has raised Rs 275 Crore through an affiliate of Creador III LP (Creador). The North India focused healthcare chain has associated with the private equity firm to raise long term investments for growth and expansion. With this capital, the 730 beds strong Paras Healthcare aims at achieving its expansion plans and supporting the existing units for capacity expansion. Incorporated in 2006 by Dr. Dharminder Nagar, Paras Healthcare has demonstrated strong growth and profitability over the years with a mix of greenfield, brown field and asset light modelled strategiesfor hospitals and is all set to strengthen its footprint in North India.

Paras Healthcare presently has two divisions– Paras Hospitals at Gurgaon, Patna and Darbhanga, providing specialised tertiary care and Paras Blissat Panchkula and New Delhi, providing specialised Mother & Child Care.

Paras Healthcare has been a differentiator in the Indian healthcare industry and has established all its endeavours on three tenets – Affordability, Accessibility and Quality. Their main aim is to empower the common man with access to specialised care, eliminating the need to travel to metropolitan cities for tertiary care.  Paras Healthcare is projected to grow and become 2000 bed strong in the next 5 years.The exponential growth plans are fuelled with the existing healthcare deficit and gap existing in North India.

According to Dr Dharminder Nagar, Managing Director of Paras Healthcare, “Access to quality healthcare services is the right of every Indian. Paras Healthcare has always envisioned itself to be a contributor in the changing landscape of healthcare in North India and work on the healthcare divide present where 70% of the doctors and hospitals are located in metropolitan cities catering to only 30% of the population. Today some of the oldest cities in North India have the weakest healthcare infrastructure. Each hospital of Paras aims at being a community player by empowering the common man, the middle class, with access to specialised care at locations that has limited or no specialised healthcare facilities. Our endeavours in Bihar illustrate our ideation. Paras Healthcare today is the largesthealthcare provider delivering comprehensive multi super specialty care in Bihar and our hospital in Darbhanga is the only super specialty corporate hospital in the Mithila region. With Creador’s support we aim to make our vision of envisaging a healthcare revolution in North India a reality.”

In this financial year, Paras Healthcare is stated to commission two units – 220 bedded tertiary care hospital with comprehensive cancer care -Paras Hospitals at Panchkula and a 50 bedded Mother and Child Care Centre , Paras Bliss at Noida. Thehealthcare provider aims to add over 1000 beds presently through a mix of new greenfield, leased and acquisitions. The announcements shall be made over the course of the current and next financial year.

According to Mr Anand Narayan, Managing Partner Creador Advisors India LLP, “Paras Healthcare is indeed a differentiator in healthcare that has the middle class as its target group. The hospital infrastructure and operations are all developed to provide the best healthcare services at affordable costs. In a landscape where 70% of healthcare costs are currently paid out of pocket, the vision and operational aspects of Paras Healthcare are relevant. We are certain that this association shall be fundamental in the evolving landscape of Indian healthcare. Moreover their presence in Bihar already elucidates their aim and execution capabilities of providing quality super specialty medical care even in the hinterlands of the country. We look forward to assist Paras in their next phase of growth.”

The exclusive financial advisor for this transaction was Avendus Capitaland Khaitan& Cowas the legal counsel.

Healthcare has become one of India’s largest sectors - both in terms of revenue and employment.The overall Indian healthcare market is worth around $100 billion and is expected to grow to $280 billion by 2020, a Compound Annual Growth Rate (CAGR) of 22.9 per cent. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 per cent of the overall market. India requires 600,000 to 700,000 additional beds over the next five to six years, indicative of an investment opportunity of $25-30 billion. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in near future. The government of India is also set to launch India's universal health plan that aims to offer guaranteed benefits to a sixth of the world's population will cost an estimated Rs 1.6 trillion ($23.72 billion) over the next four years.

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