July 05, Colombo: The Asian Development Bank (ADB) has agreed to invest $10 million of equity in DCDC Healthcare Services Private Limited (DCDCPL), a company providing dialysis and ancillary services to end stage renal disease, to help enable the establishment of critical healthcare infrastructure in India and Sri Lanka.
ADB's financing will also include a $5 million equity investment made on behalf of the Leading Asia's Private Infrastructure Fund (LEAP), one of ADB's co-financing vehicles dedicated to private sector infrastructure in Asia and the Pacific. The Japan International Cooperation Agency supports LEAP, launched in August 2016, through a $1.5 billion equity commitment.
The agreement was signed by ADB Principal Investment Specialist for Private Sector Operations Mr. Mayank Choudhary and DCDCPL's Founder and CEO Mr. Aseem Garg at a ceremony in New Delhi.
Founded in 2009, DCDCPL offers dialysis care at its public-private partnership (PPP) centers in government hospitals, along with its centers at private hospitals and two standalone clinics. It is the second largest operator of PPP dialysis centers in India, and currently has close to 100 centers in operation - located in Delhi, Haryana, Himachal Pradesh, Gujarat, Jharkhand, Madhya Pradesh, Punjab, Rajasthan, Uttar Pradesh, and West Bengal - with a total capacity of more than 800 dialysis machines.
ADB's investment will allow the company to expand its network to more than 180 centers and increase its geographic presence by covering more states in India, as well as starting a network of centers in Sri Lanka. ADB will also assist DCDCPL in capacity building, including developing human resources, improving systems and processes, and standardizing care quality.
"We are pleased to invest in DCDCPL, which will enable it to expand its dialysis care infrastructure in India and Sri Lanka. This expansion will enhance access to critical dialysis care for a larger section of the population and enable them to continue to lead productive lives," said Mr. Choudhary. "Supporting quality healthcare providers targeting provision of affordable health care is central to ADB's private sector strategy in India."
"We are enthused to partner with ADB as it will help us create a more robust dialysis platform across India. Our complementing values will prove to be a boon for ailing patients of chronic kidney disease, especially the poor ones," said Mr. Garg. "The company is proud to tie-up with various state governments towards this cause and setting up dialysis centers at district level in addition to operating centers with its private and corporate network, thus, catering to the whole spectrum and profile of patients."
He added, "This capital would be used to set up 100 new centers in the next two years. The company also has firmed up its plans to expand into Sri Lanka and a part of the proceeds from ADB's investment would be utilized towards that. With this, DCDCPL will further cement itself as a leading player in the renal space."
Approximately 1.3 million Indians need to undergo regular dialysis, with an average age of around 40 years old (compared to around 60 globally). Only about 10% of the patients undergo dialysis, partially due to insufficient supply of dialysis services. Overall, demand in India is almost 11 times that of supply, while it is 16 times in Sri Lanka. The central government announced a National Dialysis Services program in the 2016 budget to ensure dialysis centers in every district. (Media release)