| The MAARS deal |
The optimistic growth in the fertility treatment market has given an unexplored opportunity to Investors. Investment banks, venture capital firms and even parallel healthcare service providers are entering into branded in vitro fertilisation (IVF) clinics through mergers and acquisitions (M&As). Branded IVF clinic will also be in demand once the Assisted Reproductive Technology (Regulation) Bill (ART bill) tabled in the parliament will pass. It aims to regulate and supervise the ART procedure and thereby IVF clinics throughout the country. The bill details procedures for accreditation and supervision of infertility clinics and will prune out the non-clinical and sub-standard clinics and quacks.
Besides insurance coverage for the treatment cost of infertility, it has also given much needed boost to the segment.
Recently, three major private players announced their foray into this segment. While Manipal Health Enterprises and HealthCare Global Enterprises have partnered with existing brands in IVF market, TVM Capital MENA has invested in Bourn Hall Clinc India. All of the investments are related to consolidation and expansion of the IVF brand.
Manipal Health Enterprises (MHE), one of India’s leading healthcare groups announced that it has invested growth capital in Ankur Healthcare, a speciality centre focussed in delivering comprehensive services in the areas of reproductive medicine -IVF, andrology and men’s health. Manipal – Ankur Andrology & Reproductive Services (MAARS) marks the beginning of Manipal Hospital’s foray into allied healthcare delivery formats in partnership with established players in specified clinical areas. Rajen Padukone, MD & CEO, MHE said that the venture would create a chain of speciality hospitals focusing on andrology, reproductive medicine and men’s health in the country. Dr Vasan SS, CEO, MAARS aims to expand the existing four centres to 12 over the next 18-24 months, with new centres located in existing hospitals of MHE, standalone centres in cities like Chennai, Pune, Hyderabad, Indore, Chandigarh etc. as well as setting up such facilities within other hospitals.
| Launching Milann – The Fertility Center |
HealthCare Global Enterprises (HCG) announced that it has made an investment and has acquired a majority stake in Bangalore Assisted Conception Centre (BACC), a leading provider of fertility care owned by Dr Kamini A Rao. Known as Milann – The Fertility Center, the venture aims to make the best practices in fertility care available and accessible across India. “We will build upon BACC’s expertise to help establish the nation’s leading fertility care provider,” said Dr BS Ajaikumar, Chairman and CEO, HCG.
Last month, private equity and venture capital firm TVM Capital MENA said that along-with Bourn Hall Clinic UK, it will infuse $100 million (over Rs 540 crore) into Bourn Hall India to fund the opening of 18 new fertility clinics in India by end of FY16. “Our aim is to grow Bourn Hall clinics to be the main player in the in vitro fertilisation (IVF) area in India. We plan to put in $100 million to open 18 Bourn Hall clinics in India by end of three fiscal years,” said TVM Capital MENA Partner Youssef Haidar.
Talking about branded IVF clinics, Dr Anirudh Malpani, noted IVF specialist said, “Creating a national IVF brand is both a challenge and an opportunity. Anyone who is willing to do it properly is likely to reap rich rewards.”
Dr AM Arun, Chairman, Vasan Healthcare Group, in an earlier interview with Express Healthcare had also expressed interest in launching branded IVF clinics in India.
(http://healthcare.financialexpress.com/201204/market10.shtml)
In 2012, Nova Medical Centres formed a joint venture with Spain-based reproductive medicine firm, IVI to expand their clinic network in Middle East and India. Goldman Sachs and New Enterprise Associates also invested $54 million in Nova Medical Centres in August 2012.
According to a report by market research firm KuicK Research, the IVF market in India was around $ 1 billion in 2011 and is estimated to grow at a CAGR of 25.74 per cent during 2011-2015 to reach $3 billion in 2016. Nearly 30 million couples in the country suffer from infertility, with an incidence rate of 10 per cent.