Sri Kauvery Medical Care (India) Ltd.
Sri Kauvery Medical Care (India) Ltd.
Announced Date: March 2023
o3 Capital acted as the exclusive financial advisor to Kauvery Hospitals
We are pleased to announce that our client, Sri Kauvery Medical Care (India) Limited (“Kauvery Hospitals”), has received investment from a private equity fund managed by IIFL Asset Management Limited (“IIFL AMC”) for a minority stake.
Led by Dr. S Chandrakumar and Dr. S. Manivannan, Kauvery Hospitals has built a strong foothold in its focus markets of Tamil Nadu and Karnataka over the last two decades and has emerged as one the leading hospitals chain in South India. Established in 1999 as a 30-bedded hospital, it has scaled its presence to a network of 8 facilities comprising 1,500 beds spread across six cities viz. Chennai, Trichy, Bengaluru, Salem, Hosur and Tirunelveli. The Company has been backed by reputed Indian and global investors viz. Lightrock and Dr. GSK Velu’s family office, to achieve its current scale and market position. The hospital network offers a high-quality comprehensive care across specialties with a strong focus on cardiology, oncology, neurology, renal sciences, orthopaedics and organ transplants, amongst others.
IIFL AMC, part of 360 ONE, is one of India’s leading alternates asset management firms with overall alternate assets and public market mandates of more than USD 7 billion. IIFL PE is a premier private equity business with an AUM of approximately USD 3 billion and investment strategies extending from mid-stage venture capital to pre-IPO investments. IIFL PE has backed several market-leading companies with a focus on healthcare, technology, financial services and consumer industries.
The investment holds significance in Kauvery Hospitals’ next phase of growth which is likely to move towards a public listing in the next 3 years, involving augmentation of capacities in Chennai and Bengaluru, along with expansion in chosen clusters within Tamil Nadu and Karnataka. This also marks IIFL PE’s maiden investment in the multi-specialty hospitals segment and is also amongst the few minority investments in the multi-specialty space in India in the recent times.
“Kauvery is currently in the midst of a fast-paced expansion program, as it plans to reach 1,000 beds each by 2025 in Chennai, Bengaluru and Tamil Nadu clusters. This ramp up would mean that the network shall consist of 15 hospitals spread across 7 cities in South India, with 3,000+ beds and shall go for an IPO in the next 36 months.”, Dr. Chandrakumar, Founder and Chairman of Kauvery Hospitals Group said. He added, “IIFL PE has successfully backed numerous growth stories, and their presence on board will accelerate our organic and acquisitive growth across the South India market.”
Dr. Manivannan, Founder and Managing Director of Kauvery Hospitals said, “Kauvery continues to provide the best-in-class personalised care with the highest standards of clinical protocols and ethical practices. This is a key differentiator for us, and a primary driver of our growth and profitability across all our existing regions. We look forward to having IIFL PE as a valued partner and leverage from its expertise of growth investments within and outside of healthcare.”
“Our investment in Kauvery Hospitals underlines IIFL AMC’s increasing focus on investments in the healthcare businesses that offer comprehensive and affordable care to a broader set of patients,” said Nidhi Ghuman, Sr. EVP at IIFL AMC. “Kauvery has strived to stay abreast with the gaps in the affordability and accessibility of healthcare services and consequently leveraged its capabilities to fill those spaces in its focus markets. We’re thrilled to be partnering with a stellar leadership and their management team to further scale their reach across South India”, she added.
“Kauvery Hospitals’ cluster based expansion approach in the core Tamil Nadu and Karnataka markets, and its established position as a high clinical quality hospital player remains a key to its success over the years. The geographical focus, investments in quaternary care in select facilities and disciplined new project management shall continue to set the group apart across the healthcare landscape in South India.”, said Mohit Khullar, Managing Director of o3 Capital.
This marks o3 Capital's 10th deal closure in the Healthcare & Lifesciences space in the last 2 years. The deal reiterates o3 Capital’s strong credentials in this segment and our ability to consummate large deals in multi-specialty segment within healthcare delivery.