The Hindu Business Line : SembCorp to acquire 51% stake in Medicare Incin

THE Singapore major SembCorp Industries proposes to acquire a 51 per cent stake in Medicare Incin Pvt Ltd, a wholly-owned subsidiary of the Ramky Group, Hyderabad, to enter the medical waste disposal business in India.

The Singapore company, through its subsidiary — SembCorp Environmental Management (SembEnviro) - on Wednesday inked an agreement with the Ramky Group to form a joint venture company. The majority stake acquisition of Medicare Incin, will establish SembEnviro as India's first multinational environmental company in the medical waste market.

The joint venture company to be called SembEnviroRamky, will leverage the strengths of both partners to provide world-class, value-added services to the growing medical and healthcare services. The agreement was signed by Mr Ayodhya Rami Reddy, Chairman of Ramky Group and Ms Loh Wai Kiew, President & Chief Executive Officer of SembEnviro. Mr Wong Kok Siew, Deputy Chairman and CEO of SembCorp Industries, was also present at the function.

The current market size of the medical waste management services is estimated to be over $50 million with an annual growth rate of over 15 per cent.

For SembEnviro, the collaboration suited its expansion strategy in India as well as helping in internationalising its business. The company brings technical and management knowhow, regional marketing experience and an established brand name, Ms Loh said at the function.

Medicare Incin is a leading bio-medical waste management and treatment services provider, with an estimated 30 per cent of the medical waste market. It has emerged as the largest distributor of facilities in eight cities including Hyderabad, Bangalore, Ludhiana, Ahmedabad, Mumbai, Chennai, Howrah and Ghaziabad. It is exploring opportunities to develop 25-30 more medical waste facilities within the next few years.

Mr Reddy said the alliance would lead to better and high quality services to the healthcare industry in India. The group has emerged as the largest service provider in the field of industrial hazardous waste management, medical waste management and municipal solid waste management by providing services on a `cradle-to-grave' approach.

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