Mubadala injects growth capital into Indian healthcare giant Manipal

INDIA—Mubadala Investment Company, an Emirati state-owned holding company, has announced that it will invest in Manipal Health Enterprises.

Manipal Health Enterprises is a subsidiary of the Manipal Education and Medical Group (MEMG), based in Bengaluru, India, and manages 33 hospitals in 17 Indian cities.

Since its foundation in 1991 by Ranjan Pai, Manipal has expanded to run over 30 hospitals across India, treating about six million patients per year.

The group employs over 5,000 doctors and is India’s second-largest hospital network in terms of beds.

This announcement came weeks after a subsidiary of the Abu Dhabi-registered Seventy Second Investment Company, a wholly-owned subsidiary of Mubadala’s Mamoura Diversified Global Holding, received clearance from India’s fair-trade regulator, the Competition Commission of India (CCI).

The deal, as revealed in a filing to the Competition Commission on January 15, was swiftly approved under the green channel route, facilitating immediate clearance upon submission with the specifics of Mubadala’s stake and the transaction’s value remaining undisclosed.

Temasek, a Singapore government fund and Manipal’s biggest stakeholder, has sold an 8% stake to a group of investors that includes Mubadala, Novo Holdings, and the California Public Employees’ Retirement System (CalPERS). 

Following this transaction, Temasek, a Singapore-based global investment business, will retain a majority share in Manipal.

Meanwhile, Abu Dhabi has also made considerable investments in the healthcare industry, with some including the Mubadala-backed Abu Dhabi health tech startup M42, which completed multiple transactions, banking on the future of genomics in the just concluded Arab Health exhibition in Dubai,

According to a report conducted by industry research and consulting firm Emergen Research, this sector is predicted to reach US$178.5 billion by 2032.

Camilla Macapili Languille, Mubadala’s Head of Life Sciences, stated that Manipal, as one of India’s premier healthcare networks, has differentiated itself via its commitment to clinical excellence, strong patient-centric approach, and flawless corporate governance.

She went on to underline that, given the ever-increasing need for high-quality hospital care across India, they look forward to supporting Manipal’s growth path in the years to come.

Luca Molinari, Head of Asia, Direct Investments at Mubadala, expressed excitement in working with high-quality partners as Temasek, TPG, Dr. Ranjan Pai, and Manipal’s management team to propel the company through the next phase of its growth trajectory.

Mubadala, which serves as the Abu Dhabi government’s investment arm, is a crucial component in the emirate’s strategy to diversify its revenue streams away from oil.

Mubadala, with US$276 billion in assets, is strategically focusing on extending its investments in Asia, particularly in India and Southeast Asia.

This move is consistent with the backdrop of strong economic expansion and growing domestic populations in these regions.

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