Rainbow Hospitals

Enabling growth

This is how our investment is helping a leading hospital group in India to grow and reach more patients.

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In 2013, we made a $17.5 million direct equity investment in Rainbow Hospitals, an Indian healthcare provider specialising in paediatric and maternity care. We followed this with further investments in 2016. Both deals were made to enable the company to grow and reach more people across the country. As one of the fastest growing hospital groups in the country, Rainbow saw a patient growth of 30 per cent since our investment. The group has treated 620,000 mothers and children this year alone and has just been voted the number one children’s and gynaecology Hospital in India by the consumer choice ranking in The Times of India.

Patience is a virtue

“We approached many investors and chose CDC because of their patient approach,” says Dr Ramesh Kancharla, Rainbow’s Founder and Promoter. “They are there to build businesses and, at that time, we needed some support in proving that our model could be successful.”

Since we invested, Rainbow has expanded significantly. From the five locations it ran in Andhra Pradesh, it has now expanded into other regions and operates a total of 10 centres in cities such as Vijaywada, Bangalore, and Delhi. According to Dr Kancharla, our investment has enabled Rainbow to develop in other areas: “The other important thing we’ve been able to do since CDC became involved is on the education side – we’ve been able to build a robust training programme.” Rainbow trained roughly 180 pediatric doctors and almost 9 per cent of India’s new neonatology consultants. More than any other hospital in India.

Working together

We work closely with Rainbow in several areas: “There’s very good interaction with CDC at, for example, Board level. We discuss business plans and they suggest initiatives we can introduce,” says Dr Kancharla. “Another thing that has made us very strong, is the environmental, social, and governance work they have done with us.”

This work has included implementing environmental and social action plans and policies, as well as supporting the Rainbow team to achieve global sustainability standards. Most recently, we helped Rainbow’s hospital in Bangalore become the first in South Asia to receive the EDGE certificate – an internationally recognised accreditation for green buildings. By making improvements to the hospital’s design and technology, water consumption was reduced by 32 per cent, while energy consumption dropped by 27 per cent.

A shared vision

Dr Kancharla says the partnership came naturally:“We share a great relationship because philosophically we are always aligned. Having CDC as an investor has driven the group on, both in terms of financial performance and the quality of care we provide to patients.”

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