Oriflame-backed venture Medicover to enter Indian market
Lipstick maker is now set to treat fertility issues. Europe based medical chain, Medicover, backed by Swedish cosmetic house Oriflame, is set to expand its presence in India with opening its chain of fertility treatment centres.business Updated: Apr 08, 2016 20:25 IST
Europe based medical chain, Medicover, backed by the promoters of cosmetic house Oriflame, is set to expand its presence in India with opening its chain of fertility treatment centres by opening its chain of fertility treatment centres.
With a slowing European market, the medical chain plans to push investments into India. Medicover is currently present in 15 geographies like the UK, Poland and Ukraine.
It plans to open over 50 clinics to treat fertility issues in India and aims to earn $100 million (Rs 660 crore) in next three years. The company is planning to start with 2 to 3 centres across Delhi-NCR within two-three months and take this number to 10 within this year, covering most of northern India.
Oriflame promoters have already invested in local health players such as Thyrocare, Lotus Surgical and Dr.Reddy’s.
Considering the booming in-vitro fertilisation (IVF) treatment market in India which is expected to grow at a CAGR of 20% from 100,000 cycles in 2015 to 260,000 cycles in 2020, according to an E&Y report.
“We plan to open 50 green-field Medicover fertility clinics in three years,” said Felipe Velasquez, commercial director of Medicover Division. “The idea is to invest $100 million as initial investment which we target to break even in next three years.”
“Out of the 50 clinics, the company will open four—two in Delhi and one each in Noida and Gurgaon—in two months and aims to have 10 clinics by the end of the year,” said Gaurav Malhotra, CEO, Medicover India.
Medicover plans to expand its presence in Punjab, Uttar Pradesh, Haryana, Uttarakhand and then enter Maharashtra and Rajasthan in the coming years.
While the slowdown in Europe has encouraged the company to invest in India, the cost of IVF treatment, which range from Rs 150,000 to Rs 200,000 per IVF cycle in India, is about four times lower than the cost in US. “Though Europe remains our top market, we are bullish on Indian growth plans considering its population and bright economy” said Velasquez.
UK based Bourn Hall India and Nova IVI Fertility, a joint venture between Nova Medical Centers Pvt Ltd and Spanish IVF technology firm IVI are the two major players in the IVF treatment category. Apollo Hospitals and Max Hospital chains also provide the same treatments.