Company snapshot: DM Healthcare

Date established 2002

Main business area Healthcare

Main business region GCC and India

Chairman Azad Moopen

DM Healthcare structure

Dubai-headquartered private healthcare provider DM Healthcare has undergone several name changes in its 23-year history. The firm dates back to 1987, when Azad Moopen moved to Dubai to work as a doctor and established his first clinic. Two years later, he opened a pharmacy alongside and so laid the foundations for the Dr Moopen Group. A specialist centre and diagnostic centre were subsequently added to the group’s portfolio, and, in 2002, the holding company Dr Moopen’s Healthcare Management Services was established. In 2005, Moopen opened his first hospital and a second was commissioned in 2007.

Indian private equity firm India Value Fund Advisors (IVFA) bought a 28 per cent stake in the company in 2008 and later the same year, it was renamed DM Healthcare. The Moopen family retain a 68 per cent shareholding in the firm. Since the injection of private capital, the company has expanded beyond its base in Dubai into the wider GCC and has also built up a presence in India. Today, DM Healthcare has about 2,500 employees in the Middle East. For 2010, the firm expects to post revenues of about AED700m.

DM Healthcare operations

In the Middle East, DM Healthcare has operations in the UAE, Oman and Qatar, and its portfolio comprises 78 pharmacies, 40 clinics and four hospitals. It has two hospitals in Dubai and two in Oman, in Muscat and Sohar. The facilities in Qatar are medical centres. DM Healthcare’s clinics and hospitals treat about 5,000-6,000 patients a day. Its chain of pharmacies serves about 8,000 customers a day. The company operates under two brands in the region: Medcare, which caters to the premium-end of the market and Aster, which has a wider presence and targets the middle-income group.

In India, DM Healthcare has a 30 per cent stake in 2 hospitals through its Mims brand. The hospitals have a combined capacity of 750 beds and treat around 2,000 patients a day. The company is currently in the middle of a major expansion of its India operations, including the construction of a medical city in Kochi. The project comprises a 400-bed hospital, a convention centre, accommodation blocks for students and doctors, and a hotel. The first patients are expected to arrive in 2012.

DM Healthcare also has a consulting arm, Eurohealth Consultancy. It was originally set up to provide operations and maintenance solutions for hospitals and consulting services for companies wanting to set up in the region. However, the company’s own growth has been so fast that it has decided not to focus its resources heavily in this area, although it is currently consulting on project to open a healthcare facility in Al-Ain in the UAE.

DM Healthcare ambitions

DM Healthcare aims to be the largest private healthcare provider in the GCC and India by 2015. By that date, it hopes to have at least 12 hospitals, 175 pharmacies and 75 clinics in the Gulf region. The company is planning to open its first hospitals in Bahrain, Kuwait and Qatar and is positioning itself to take advantage of the huge growth in healthcare demand predicted for Saudi Arabia.

By 2015, DM Healthcare hopes to have five hospitals, 15 clinics and 15 pharmacies in the kingdom, at an investment cost of SR250m ($67m). It has registered a company with the Saudi Arabian General Investment Authority and earlier this year, signed a joint venture with the local Rashid al-Rashid group to build three hospitals and a chain of clinics and pharmacies over the next three years. The hospitals will be located in Riyadh, Jeddah and Damman and will each have a capacity of 100-150 beds. They will be multi-speciality hospitals up to secondary care level, offering a few select tertiary care treatments.

In India, DM Healthcare hopes to have 4,000 hospital beds by 2015. In total, in the next three years, the company expects to invest some $300m in hospitals, clinics and pharmacies. The firm is also looking at the potential for hospital acquisitions in the GCC and India to help it achieve its targets.

To fund its rapid growth, DM Healthcare is planning a stock market flotation in two-three years’ time, either in India or a GCC country. Before then, the Moopen family intends to dilute its shareholding with either IVFA increasing its stake or another private equity firm coming in to provide capital. DM Healthcare’s GCC operations account for more than 80 per cent of its income at present, but the firm’s expansion in India is expected to bring a more even balance in future.