Lulu Group arm VPS Healthcare earmarks Rs 1,000cr for buyout

The group has already invested over Rs 1,750 crore in these two hospital brands in the country

The Abu Dhabi-based VPS Healthcare, a part of LuLu group, has created a Rs 1,000-crore war-chest to tap takeover opportunities in the domestic healthcare mart. With over a $1 billion turnover, is an integrated healthcare provider with primary, secondary and tertiary care hospitals and clinics as well as drug manufacturing and pharma retailing, in the Gulf region, India and Europe, and runs four hospitals in the country — three in Delhi-NCR region and one in Kochi.

Since its inception in 2007, VPS has grown into one of the UAE’s premier integrated healthcare groups and currently owns 22 hospitals under 13 brands, over 125 medical centres and employs 13,000, including over 1,800 doctors.
The group runs four facilities in the country — three in the Delhi-NCR region under the VPS Rockland label (Qutab area and Dwarka in the Capital and one at Manesar in Haryana), and VPS Lakeshore Hospital in Kochi.

“We’ve set aside Rs 1,000 crore for acquisitions in the country. We are in talks with three-four hospital and over the next one year, we should have at least three more hospitals here,” said Shamsheer Vayalil, founder of VPS Healthcare Group.

The group has already invested over Rs 1,750 crore in these two hospital brands in the country.

“We’ve already pumped over Rs 750 crore into the 800- bed Rockland Hospital chain in which we own 100 per cent and around Rs 1,000 crore in the 600-beds Kochi facility where we own the majority stake,” the Vayalil said.

On expansion, Vayalil, worth $1.57 billion this year and who is also an avid marathon runner, said the plan is “to take the existing capacity to 5,000 beds in the country over the next three years, hence the focus on inorganic growth”.

Another three growth areas that he is looking at is medical tourism, especially in Kochi, and rapid expansion of his drug manufacturing arm with focus on oncology and vaccines and highly specialised R&D, apart from O&M (operations and maintenance) opportunities.