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Dubai-based Abraaj Group has agreed to buy a majority stake in the Indian healthcare provider Care, as it aims to tap India’s burgeoning multibillion dollar industry.

 

Care, which is based in Hyderabad, is the fifth largest healthcare provider in India, with 16 hospitals in nine cities.

 

India’s spending on health care is rapidly increasing and more facilities are much needed.

 

Abraaj also plans to expand the chain into other countries where it has a presence.

 

“The implications of the healthcare gap in India are profound, but they translate into a long-term opportunity for Abraaj to help build a better and more sustainable healthcare infrastructure in the country,” said Sev Vettivetpillai, a partner and the global head of Abraaj’s thematic funds business. “Care has been a pioneer in providing quality health care to middle and low-income patients in India, and has the potential for further expansion domestically and internationally.”

 

Abraaj did not disclose the financial details of the deal. It is acquiring the stake from Advent International, an American global private equity firm.

 

Abraaj said that the partnership would “focus on providing accessible and affordable care in underserved cities throughout India”.

 

India’s healthcare sector is expected to grow by 15 per cent annually to reach US$90 billion by 2017 compared with $58.2bn in 2014, according to KPMG.

 

Its figures show that per-capita healthcare spending is expected to have risen to $88.7 last year from $57.9 in 2011.

 

There is soaring demand for treatment in India amid the proliferation of so-called lifestyle diseases, including diabetes and heart conditions.

 

It is not the only UAE-based company that is investing in India’s healthcare industry. Aster DM Healthcare, which has its headquarters in Dubai, in May launched the 5.5bn rupee (Dh302.28 million) first phase of a medical township that it is developing in Kochi, in Kerala.

 

Aster DM has also acquired hospitals in Hyderabad, Bangalore, Pune and Kolhapur, and plans to continue its expansion drive in the country.

 

Narayan Shetkar, the director of Singhi Advisors, a global investment banking firm based in Mumbai, said that India’s growing healthcare sector offers “significant business opportunities” for foreign and Indian companies alike.

 

He explained that Abraaj’s ­investment into Care Hospitals could help to “drive foreign investment into Indian healthcare market”, including from the Middle East, as well as allowing Care to expand its network across areas of India that are still relatively untapped when it comes to health care.

 

Abraaj said that the deal marked “Abraaj’s 28th investment in health care across growth markets”, with its previous transactions into the sector totalling almost $1bn.

 

It added that the latest deal would be “subject to customary closing conditions and is expected to conclude” this quarter.

 

The private equity group in October partnered with the Indian conglomerate Aditya Birla to invest in developing solar power plants in India.

 

Source: The National | Business

Piyush Goyal, who is here to take part in the India Japan Strategic Energy Dialogue, also said that companies and lenders in Japan have evinced interest in setting up big solar projects and setting up equipment manufacturing lines in India.


Power and Coal Minister Piyush Goyal invited Japanese companies to invest in India's energy sector to help provide affordable electricity supply round the clock in the country.


Piyush Goyal, who is here to take part in the India Japan Strategic Energy Dialogue, also said that companies and lenders in Japan have evinced interest in setting up big solar projects and setting up equipment manufacturing lines in India.


"India offers a huge opportunity to the world. India is open to investments from around the world in order to help us serve our people with affordable energy access 24x7," Goyal told reporters here.


He said that the country is also looking at engaging financiers and different financial institutions which are looking to finance major energy-related initiatives in India.


Goyal said that "everybody realises that nowhere else in the world can they visualise that by 2030 energy production will quadruple and the sector offers opportunity of immense investments up to USD 250 billion by 2030 and the investment could be as high as 600 billion or a trillion dollars".


Stating it to be the first India Japan Strategic Dialogue after the BJP formed the government in the Centre, he said, "This time instead of Government to Government delegation comprising of different Ministers of Government of India, several public and private sector companies have come under the aegis of CII".


Speaking about the meeting during the day, the minister said, "In all the round tables, the focus was the understanding that India was probably world's largest market today being the largest and fastest growing economy."


Goyal said companies and lenders in Japan have evinced interest in setting up big solar projects and setting up equipment manufacturing lines in India. He said that the future ultra mega power projects that will be bid out by the Government also offer investment potential to the foreign firms.


The minister will meet various financiers including JICA, Nippon Exports and Insurance Investment and JBIC tomorrow which are looking to tap opportunities in Indian energy space.


Source: CNBC TV18, Money Control

India is the world's biggest outsourcing destination in terms of financial attractiveness and business environment, according to a study published today by a London-based global management consulting firm.

 

A T Kearney's 2016 Global Services Location Index (GSLI) rated India as number one out of the total 55 countries analysed.

 

China, Malaysia, Brazil, Indonesia, Thailand, The Philippines, Mexico, Chile and Poland respectively made up the top 10 list.

 

Offshoring to India remains a high attractive proposition for many companies, said the study which also takes a deeper dive into optimal cities for offshoring within the ranked countries.

 

"While India and the Philippines are still top of mind when it comes to offshoring, the hunt for new talent is now taking companies beyond these countries' capitals and major cites to tier 3 locations such as Surat, Nagpur, and Lucknow in India and Bacolod and Iloilo City in the Philippines," said Nikolai Dobberstien, partner with A T Kearney's Communications, Media and Technology practice.

 

One advantage of tier 3 cities is the relative affordability of real estate as facilities in Nagpur and Ahmedabad are 25 per cent to 30 per cent cheaper than Kolkata and Delhi, the report said.

 

Another advantage is the relative availability of labour, its lower cost and lower attrition rates.

 

Many of these cities have highly developed educational infrastructure, ensuring fresh crops of qualified graduates for the foreseeable future, GSLI said.

 

"Even though the top six or seven countries are landing in the same order this year as 2014, looking forward, this could all change radically because the very nature of what's being outsourced is changing," said Arjun Sethi, global leader of A T Kearney's strategic IT practice.

 

"For the first time, we have a trend - automation - that could displace the leadership of the likes of India and China in outsourcing. Technology's relentless progress continues to transform in unanticipated and fundamentally different ways not only where work is moving to, but how and by whom - or by what - it is being done," Sethi said.

 

He said the new business model associated with this automation threatens established concepts of offshoring, while expanding the market.

 

India's undisputed industry leadership is facing a challenge from China which has become attractive with its recent devaluation of Renminbi and gains in educational skills and cultural adaptability.

 

"The implications on accessibility of services and employment in these countries are massive. On the client or receiver end, Business Process as a Service (BPaaS) dramatically lowers the entry barriers to business data management, opening the floodgates to smaller and newer companies," said Sethi, principal author of the study.

 

The GSLI, launched in 2004, helps companies make key location decisions for offshoring and industry development projects with objective guidance.

 

Source: Business Standard

India Ratings and Research has welcomed the amended technology upgradation fund scheme (ATUFS), saying it would boost investments in the textile sector but cautioned that total benefits to companies may be lower.

 

"The total benefit to textile companies is likely to reduce due to the change in the nature, quantum and target segment for benefits under the scheme (ATUFS)," Ind-Ra said in a statement.

 

It said the subsidy would be largely capital based, a change from the earlier interest and capital base.

 

"The garmenting segment will receive a higher subsidy as compared to the other segments, while the overall quantum of subsidy appears to have reduced," the rating agency said.

 

By capping the subsidy amount, the benefits of the scheme have been channelised towards small to mid-sized enterprises instead of large companies, it said.

 

It said ATUFS stipulates only a capital subsidy, instead of the interest cum capital subsidy that was the norm under the earlier version of the scheme. This could be a setback for processors and weavers which enjoyed both capital and interest subsidy.

 

According to the statement, the new policy is particularly unfavourable for weavers since it reduces the capital subsidy and it also withdraws the interest subsidy.

 

As per the amended scheme, the subsidy amount is capped, which was not the case earlier. The capping of the subsidy implies that larger projects will be largely self-reliant, while providing higher support to small and medium enterprises.

 

"This is a setback for the large sized projects as it will reduce the subsidy benefit substantially for fresh capex by the larger players.

 

"While capping will help distribute the subsidy amongst a larger number of players, however, there is a possibility of break-up of larger projects into different entities to avail benefit under the scheme," Ind-Ra said.

 

It said India has the largest spinning capacity globally but only accounts for four per cent of the total global garmenting exports, indicating the need to build capacity in the value added segments.

 

On December 30, 2015, the Cabinet Committee of Economic Affairs had cleared the ATUFS for the textile sector which is witnessing sluggish investments. Ind-Ra said the amended scheme is likely to give impetus to modernisation and scaling up of existing production facilities and for green field investments.

 

While industry exporters bodies have welcomed the ATUFS, small manufacturers have criticized it, saying it favours large companies with financial muscle. (SH)

 

Source: Fibre2Fashion News Desk - India

In order to ensure the industry participation in Skill India Mission in a big way, the Centre has planned a major outreach programme for industry leaders to bring them on a common platform for the greater interaction.

 

To this end, the Union Government is organising a "National Industry Conclave on Skills" on January 12 in Mumbai. The conclave will be an annual event and will see participation from across ministries and corporates. This inaugural conclave is being held on the occasion of the 153rd birth anniversary of Swami Vivekananda.

 

Union Urban Development and Parliamentary Affairs Minister Venkaiah Naidu will be steering the conclave along with Minister of State for Skill Development and Entrepreneurship Rajiv Pratap Rudy.

 

"It is a meeting of industry leaders who are the stakeholders in the skill ecosystem, to conceive and partner towards realising the vision of Skill India," an official statement said today. Outlining the theme of the conclave, Mr Rudy said that the conclave would be an annual feature to review the work done across sectors and regions. "This will be a good platform to bring about synergies and convergence across all and contribute collectively to the success of Skill India. Public Private Partnership in Skill Development, Skill imperative for industrial growth and Improving Livelihood of Rural India through Skill India are some of the topics that will be discussed during the day long conclave," he said.

 

From the Maharashtra Government, Chief Minister Devendra Fadnavis will be sharing his views on skill development. Several Union Ministers, including Defence Minister Manohar Parrikar, Union Minister of Road Transport and Highways and Shipping Nitin Gadkari, Union Minister of Rural Development Birender Singh and Petroleum and Natural Gas Minister Dharmendra Pradhan are likely to address the conclave. The conclave will bring together industry captains and professionals from across industries onto one platform to deliberate on important issues related to skill development in India. Industry leaders from corporates like Tata, TCS, Reliance Communication, Bharti Airtel, JSW Steel, Reliance Industries, GVK, GMR, Essar and others will also take part at the conference.

 

Source: webindia123