Asia Healthcare Holdings (AHH), backed by TPG Growth and Singapore's GIC, has acquired a majority stake in the Asian Institute of Nephrology and Urology (AINU) for Rs.600 crore. AHH's investment will come from acquiring new shares and shares from existing investors. AINU operates a network of urology and nephrology care hospitals and has posted substantial revenue and profit figures. This move marks AHH's entry into the urology and nephrology specialty, expanding its portfolio that includes Motherhood Hospitals, Nova IVF Fertility, and the American Oncology Institute. The nephrology and urology sector in India is projected to grow significantly in the coming years.
Asia Healthcare Holdings (AHH), a healthcare delivery platform backed by TPG Growth and Singapore's GIC, has announced its acquisition of a majority stake in the Asian Institute of Nephrology and Urology (AINU). This acquisition, totalling Rs. 600 crore, includes the purchase of new shares as well as shares from existing investors, marking a significant move into the urology and nephrology care sector for AHH.
AINU is India's largest single-specialty hospital network specializing in urology and nephrology care. Founded in 2013 by a team of urologists and nephrologists led by C Mallikarjuna and PC Reddy, AINU currently operates seven hospitals in various locations, including Hyderabad, Visakhapatnam, Siliguri, and Chennai. With over 500 beds, the network has treated more than 400,000 patients and completed over 50,000 procedures.
The financials of AINU are robust, with reported revenues of Rs. 160 crore and an operating profit of Rs. 35 crore for the fiscal year 2022-23. This acquisition represents AHH's entry into the urology and nephrology specialty, expanding its diverse portfolio that already includes Motherhood Hospitals (a network specializing in women and child healthcare), Nova IVF Fertility, and the American Oncology Institute.
The move into urology and nephrology is well-timed, given the growing demand in India. In 2022 alone, the country recorded approximately 18.9 million nephrology and urology procedures. This sector is expected to continue its rapid growth, with a projected Compound Annual Growth Rate (CAGR) of 8-9% over the next five years. This makes it one of the fastest-growing specialties in India's healthcare landscape.
Asia Healthcare Holdings was incubated by TPG Growth in 2016, under the leadership of former CEO of Fortis Hospitals, Vishal Bali. Since its inception, AHH has made substantial investments of about $400 million in various single-specialty healthcare enterprises, focusing on oncology, mother and childcare, and fertility treatments.
The acquisition of a majority stake in AINU by AHH reflects the ongoing consolidation and expansion within India's healthcare sector. As healthcare providers seek to enhance their capabilities and broaden their offerings, specialty hospitals like AINU play a pivotal role in meeting the diverse healthcare needs of the population.
By venturing into the urology and nephrology segment through this strategic acquisition, AHH aims to further strengthen its position as a leading player in the Indian healthcare ecosystem. This move not only diversifies its portfolio but also aligns with the growing demand for specialized healthcare services, ultimately contributing to improved patient care and outcomes.
The transaction was facilitated with advisory support from O3 Capital, and its completion solidifies AHH's commitment to providing high-quality healthcare services across a range of specialized fields, meeting the evolving needs of India's healthcare landscape.
In conclusion, Asia Healthcare Holdings' acquisition of a majority stake in AINU underscores its strategic expansion into the urology and nephrology specialty, capitalizing on the growth potential in India's healthcare sector. This move aligns with AHH's mission to offer comprehensive and specialized healthcare services and positions it as a prominent player in India's evolving healthcare landscape.
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