Abu Dhabi’s Mubadala Investment Company is entering into an investment in Manipal Health Enterprises in India, as part of its ongoing expansion in Asia’s third-largest economy.
Manipal, established by Ranjan Pai in 1991, manages over 30 hospitals throughout India, catering to approximately six million patients annually, as disclosed by Mubadala on Monday.
With a workforce exceeding 5,000 doctors, Manipal stands as India’s second-largest hospital chain by bed count. Mubadala did not reveal the extent of its stake or the transaction’s value but mentioned that Temasek, a Singapore-based global investment company, will retain a majority stake in Manipal.
Camilla Languille, head of life sciences at Mubadala, expressed anticipation in supporting Manipal’s growth journey given the escalating demand for high-quality hospital care in India.
India’s Hospital Sector to Surge: 18% Annual Growth
Projections from the Invest India government portal indicate that the hospital sector in India is expected to witness annual growth of over 18%, reaching 18.34T rupees ($220.99B) by the financial year 2027.
As an investment entity working on behalf of the Abu Dhabi government, Mubadala plays a pivotal role in the emirate’s strategy to diversify its revenue sources and generate income beyond oil, according to The National News.
The company’s interests span six continents and various sectors, including aerospace, information and communications technology, semiconductors, metals and mining, renewable energy, oil and gas, and petrochemicals.
With assets valued at AED 1.01T ($276B), Mubadala aims to enhance its investments in Asia, particularly in India and South-East Asian nations, amidst rapid economic growth and an ongoing increase in domestic populations.
Khaldoon Al Mubarak, Mubadala’s group chief executive and managing director, highlighted a shift towards major economies with substantial populations that have experienced significant growth, focusing on building capabilities in these regions over the past decade.
In 2023, Mubadala unveiled new investment agreements in India as part of its expansion strategy in the world’s most populous country. This included becoming anchor investors in Cube Highways Trust, an infrastructure investment trust in India, alongside the British Columbia Investment Management Corporation.
Mubadala also invested $525M, in collaboration with BlackRock Real Assets, in Tata Power Renewables, a prominent renewable energy company in India. Luca Molinari, head of Asia, direct investments at Mubadala, emphasized Manipal’s crucial role in developing India’s national healthcare infrastructure.
In the previous year, Mubadala secured a position among the top 10 most active deal makers among global sovereign wealth funds, alongside entities such as Saudi Arabia’s Public Investment Fund, Abu Dhabi Investment Authority, and ADQ, according to the Global SWF report.