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Deal Alert: Aureos Capital invests $10-M in Central India Hospotal Chain BSR Super Specialty Hospitals

From the Press Release

Funds managed by Aureos Capital have completed a $10m investment in the BSR Super Speciality Hospitals Limited (BSR), a leading Indian healthcare group.

Aureos Capital Limited is a private equity fund management company specialising in investing in small and medium sized businesses in emerging markets.



BSR currently owns and operates six diagnostic centres and two major hospitals across five cities in Central India. The hospitals include a 175-bed tertiary hospital (BSR Super Specialty Hospital, Bhilai) and the first specialist cancer hospital (BSR Cancer Hospital) in the state of Chattisgarh.

BSR Super Specialty Hospital is the first tertiary care hospital in the region, providing thousands of patients to date with previously unattainable levels of care.

BSR Cancer Hospital, the first specialist private sector cancer hospital in Chattisgarh state, is currently undergoing an extensive remodelling to increase quality and depth of its cancer care offering.

BSR Hospitals also owns Bhilai Scan and Research Limited (BSRL), who operate imaging diagnostics centres fully equipped with radiology and pathology services, across Central India.

BSR’s strategic alignment with Aureos will pave the way for continued expansion in its network of hospitals and diagnostic centres in wider geographies. BSR Hospital intends to start nine new imaging diagnostic centres and several new hospitals in the region, including a 150-bed multi-specialty hospital in Nagpur and a hospital in Rajnandgaon.

Analysts expect the hospital and diagnostic services market in India to grow at 20% per annum. G.V. Kumar, Partner of Aureos in India, comments: “The Indian healthcare sector, particularly in the underserved region of Central India is chronically under-funded, which has created a huge demand for private investment in the Indian hospital industry.”

Statistics reveal that there are 3,316 people to every hospital bed in Central India. The government aims to reduce this to one for every 800 people, suggesting that private sector investment will need to play a major role in increasing hospital capacity.

G.V. Kumar comments: “BSR Hospitals, driven by the visionary Dr. Khanduja, is a well-established healthcare group and a recognised brand. Its continued expansion into many of India’s most overlooked regions makes both a compelling investment case but has obvious benefits for the region’s population.”

“As well as providing critical healthcare services to the region, BSR Hospitals’ consultative status allows students to train within the facility, creating more doctors and healthcare professionals in an area that is widely expected to require an injection of medical expertise to cope with the growing population.”

The company has recently completed a deal with the Medica Synergie Group in Kolkata, a 500-bed hospital, to manage their entire radiology department, marking the first time that the group will operate a diagnostic centre on behalf of another organisation.

Balaji Srinivas, Managing Partner of Aureos in India comments “Our aim is to offer management all the help they need to facilitate the growth of the healthcare group as it expands throughout Central India and looks to establish itself as the leading provider of healthcare facilities in Central India.”

“India’s rapidly growing middle class population is driving demand for healthcare services across Central India. Higher levels of disposable income per household as well as increased awareness of lifestyle related diseases such as cardiac ailments have led to increasing levels of health insurance amongst the population.”

“Aureos’ investment in BSR is in line with its philosophy of reaching the tier 2 cities in India to propel investment and growth. We intend to use our capital to expand into Tier 3 cities as well, where demand for quality affordable healthcare services outstrips supply. This is in line with Aureos India’s core strategy to move into underserved cities within India to invest in basic industries servicing the domestic market that provides attractive risk-adjusted returns by building sustainable business leaders of the future.”

BSR Hospitals was founded in 1993 by Dr. M K Khanduja, a leading Paediatrician in Bhilai. Dr.Khanduja, has figured in the “best 50 pathfinders” (entrepreneur doctors) published by Express Health Care magazine of The Indian Express group. Dr. Khanduja is the only person from all of Madhya Pradesh, Chhattisgarh, Orissa and Vidharbh to figure in this magazine.

Dr. M K Khanduja, Chairman & Managing Director of BSR Healthcare, comments: “Our growth story is a mirror of the need for far reaching changes impacting healthcare. We have been pioneers in bringing the modern medical technology to the region and have worked closely with the community to provide diagnostic and therapeutic services. We are sure that our growth plans will get a boost with partnering with Aureos. We will continue to focus on fulfilling the healthcare needs of the community at large.”

N. Muthuraman, Director at RiverBridge Investment Advisors Pvt. Ltd., comments: “It has been a truly satisfying experience to work with BSR Group in their maiden capital raising plan and Aureos India. We are proud to have assisted a first generation entrepreneur from an under-banked Tier 2 market such as Chhattisgarh in accessing mainstream capital. We had strong conviction on the investment proposition because of the significant growth potential in BSR Healthcare with its unique combination of diagnostic services and mid-size hospitals.”

BSR Super Speciality Hospitals Limited, owns and operates Apollo BSR Hospital, Bhilai, in association with Apollo Hospitals Enterprises Ltd. Chennai, the largest chain of healthcare providers in India. BSR Hospitals specialise in Cardiology, Cardio Thoracic, Oncology, Neurology, Orthopedic, Nephrology, Pediatrics, Urology, Gastroenterology and emergency care. The hospital aims to provide quality healthcare at affordable cost.

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