Companies

India is our long-term growth hub: Medicover Global CEO

M Somasekhar Hyderabad | Updated on February 19, 2020 Published on February 19, 2020

The Poland-based healthcare and diagnostics services provider is planning to expand presence and bring its diagnostics business to India

Medicover Global, a leading healthcare and diagnostic services provider from Europe, plans to add at least 10 new hospitals in the next five years and bring its diagnostic business to India in a year, according to its Chief Executive Officer (CEO), Fredrik Ragmark.

The group, which entered India through the acquisition of Maxcure Group in late 2016, will add at least 1,000 beds by the end of 2020 through new facilities in Hyderabad, Telangana and Visakhapatnam and Srikakulam, Andhra Pradesh.

The CEO and other top executives of the Group were present at the launch of a a 250-bed hospital in Nllore on Wednesday.

Expansion plans

So far, Medicover Global has invested ₹700 crore in the form of debt and equity, and has committed another ₹300 crore towards upcoming projects, including the Medicover Oncology Institute (MOI) facility in Nellore, which will have 100 beds.

At present, the Poland-headquartered Group has 11 hospitals and 16 fertility clinics in India. It is present in Hyderabad, Kurnool and Visakhapatnam, apart from Nellore. The Group is in talks to acquire a 500-bed hospital in Hyderabad and is in the process of adding another 500 beds in AP, by setting up a 200-bed unit in Visakhapatnam and a 300-bed facility in Srikakulam.

“India is our long-term growth hub. We have preferred it over China. We will consolidate and grow in the three States of Telangana, AP and Maharastra in the near term. Over five years, will expand more in Maharastra and explore one or two more States”, Ragmark told BusinessLine in a phone conversation.

Started in 1995 in Poland, Medicover over the past 25 years has steadily grown its presence in Poland, Romania, Ukraine and India with 21 hospitals and more than 100 healthcare centres and 23 fertility clinics. Its main business divisions are healthcare services and diagnostics, with the latter contributing 45 per cent of revenues.

Medicover brand

After the takeover, Maxcure was rebranded to Medeicover in Hyderabad, Medicover has rebranded it to Medicover and is working towards consolidation, expansion and bringing in global standard healthcare. “We will gradually bring the broad-based healthcare services to India, depending on the demands and opportunities. The big challenge is to establish the brand,” Ragmark said.

Medicover may be a new brand in India, but “our strategy is to go slowly over time, establish the quality brand and not rush. The Indian market is huge and can accommodate many players. We have a lot to learn from competition and have to find our niche and grow,” the CEO said in response to queries.

Anil Krishna, chairman, Medicover India, said apart from capital infusion, Medicover Global will bring in processes and automation which have emerged as the key components in last-mile healthcare delivery.

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Published on February 19, 2020
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