Withinaspanof sixmonths,as theworldwasmourningtheglobalrecession,twoof India's largest hospital chains, Prathap Reddy promoted Apollo Hospitals and Malvinder and Shivinder Singh promoted Fortis Healthcare have ventured out to Mauritius. They have tied up with strong local partners and established their presenceinthatcountry .
Collectively, all these players have committed an investment of $77 million in Mauritius. But the Indian players' investment did not cross$13million.
The story of the two healthcare majorsinthiscaseisinspiredbycommonpullfactorsof Mauritius,where neitherof themwantedtobeleftoutof the high potential medical tourism story unfolding in what is termed as the most investible destination in Africa. Access to population of three continents, Indian diaspora, first mover's advantage and the government's cooperation and business friendly environment lured the Indian players to Mauritius, which couldeventuallyserveasabridgetomaturedmarkets of Europe. Both the players feel that the investment inMauritiuscouldstartatrendof acquisitionsinfuture by Indian players abroad. However, expansion in home ground remains the immediate focus. A look at the size of investment and the route of acquisitions tells that the stories of Apollo and Fortis are farfromidentical. In January, in its first overseas acquisition, For tis partnered with diversified industrial group CIEL to acquire hospital Clinique Darne for $7 mil lion. Fortis was a 50% partner with a committed in vestment of $3.5 million. Apollo had entered into a joint venture last year with British American In vestment to set up a hospital with an investment of $70 million with a debt-equity ratio of 1.25:1. Apollo committed26%investmentintheequitypartof the JV . The hospital was inagurated in Augustthisyear.
Sunitha Reddy , executive director, finance, Apollo Hospitals, told FE, "With a population of 1.3 million, a floatingtouristpopulationof almost1 million,apercapitaincomeof $12,000, but with an underdeveloped tertiary healthcare service, Mauritius was a verylucrativepropositionforus."For tis didn't get similar tax incentives, but the tax benefits accruing from thedoubletaxavoidanceagreement that India has in place with Mauri tius makes it a preferred country compared to many others from the compared to many others from the taxperspective.
"Over 60% of the Mauritians are of Indian ori gin,sothemarketiseasytounderstand. Theinvest ment committed by us is relatively low and the valuation we have got is quite attractive. The healthcare market is not very highly developed which gives us the first mover's advantage. The floating tourist population of around 0.8 million gives a lot of elective surgery opportunity," said Yo geshSareen,CFO,Fortis.
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