Hyderabad, Oct 13 (UNI) Hyderabad-based dialysis care network NephroPlus which operates 230 dialysis centres across India, on Tuesday announced that it acquired its first majority stake in Royal Care Dialysis Centers (RCDC), a reputed dialysis network in Philippines to become a leading global dialysis service provider.
The transaction of major 51 per cent stake in RCDC was already over and we are also planning to acquire another 28 per cent in next 3 years, NephroPlus Founder and CEO Vikram Vuppala said in a virtual press conference here without disclosing the sum involved in the acquisition.
Currently, RCDC provides 40,000 plus sessions per year through its 6 dialysis clinical centres existing in Philippines, he said through this strategic partnership, NephroPlus has become the 1st Indian dialysis network to expand overseas, marking the company’s transition to becoming a Multi-National Corporation (MNC).
Through this deal, NephroPlus will be responsible for the network’s existing operations and will lend all its India based protocols, technologies and operational expertise to RCDC with an aim to improve dialysis care in the Philippines, Mr Vikram said as part of company's overseas expansion strategy, NephroPlus aims to expand the services in other provinces and plans to grow this network to 50 plus dialysis centers to become the dominant dialysis network in the Philippines by 2025.
Under this deal, he said we both jointly build the country’s target dialysis network and investing 15-20 million US dollars in the next 4-years and added this strategic partnership will immensely benefit the patients of both Philippines and India over the next several years.
It is an Opportunity to position NephroPlus as a global company through a well aligned partnership with an established profitable player, he said with its ability to deliver high quality dialysis at the lowest cost structure in the world, it aims to become a leading global dialysis service provider.
Mr. Vikram said with this entry into Philippines, we reiterate our commitment to build a dominant multinational network across Asia, Middle East and CIS geographies.
To a question, he said NephroPlus was not affected in revenues and ‘zero ‘ layoffs despite a 10 per cent dip in volumes during the Covid-19 lockdown situation though it was stabilized now.
The 10-year-old Indian firm, which reported about Rs 260 crore of Revenue in FY20, is looking for Revenue of Rs 300 crore in this fiscal, he added.
The dialysis cost was little impacted during the COVID lockdown situation due to depending 90 per cent of Active pharmaceutical ingredients (APIs) on China, the CEO said.
Commenting on the deal, RCDC Founder Sunil Chellani, said, “we aim to bring NephroPlus’s world class clinical care coupled with industry leading patient centric philosophy to better serve patients in the Philippines.
With this partnership, we are confident that we will grow to become the dominant dialysis network in the Philippines in next 4-5 years, he added.
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