ICICI Invests Rs 35 Crore In Metropolis Health Services

Metropolis scripts a growth plan involving outsourcing, geographic expansion and lab management

EHM News Bureau

Metropolis Health Services is planning to expand its horizons. Private equity and venture capital management company, ICICI Venture has invested Rs 35 crore in Metropolis Health Services.

With 17 state-of-the-art laboratories, 200 franchisees, catering to more than 3,000 small labs, and with over 10,000 consulates globally, Metropolis is on its way to greater expansion. The investment is provided by a fund managed by ICICI Venture - India Advantage Fund-I.

Speaking to Express Healthcare Management, Dr Sushil Shah, Founder & Chairman, Metropolis, said," Internal accruals were not enough for the expansion we are aiming at. We target to be a significant diagnostic player by joint ventures or acqisitions in countries like South and East Asia, and South Africa."

"We wanted to be a team behind a strong management to catalyse things. And, the management at Metropolis proved to be the best option," said Renuka Ramnath, CEO & MD, ICICI Venture, adding "Metropolis management has a broad mindset about business, with a global prospective."

Metropolis has made a mark for itself through the strategic partnerships that it has formed in Seychelles, Sri Lanka and UAE. "Apart from this, we are also planning a green field project in South Africa," said Shah.

ICICI has so far invested a third of its USD 250 million India Advantage Fund in the healthcare sector. "Structured healthcare will expand in leaps and bounds. So, why not consolidate and grow globally and build a 'Brand India' in healthcare," said Aluri Srinivasa Rao, Director-Investments, ICICI Venture.

"Metropolis has grown over 100 per cent in the past three years consistently, and with the infusion of new capital and resultant higher borrowing leverage, we now want to agressively pursue opportunities globally. We plan to make Metropolis a Rs 500-crore company in the next three years," averred GSK Velu, Managing Director, Metropolis.

The Company is also looking at expanding their site management organisation division and clinical research central lab testing segments in Asia. It will continue with its domestic acquisitions in cities like Kolkata, Bangalore, Hyderabad and Delhi.

Avendus acted as the advisor to Metropolis on the deal. Said Shiraz Bugwadia, AVP, Avendus Advisors, "Emerging healthcare segments like pathlabs, medical devices and CROs are increasingly attracting investment from the blue chip private equity investors. Players like Metropolis who enjoy first mover advantage and have strong focus on quality will emerge as clear leaders within their respective segments."