Apollo Specialty

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Established in 2000, Apollo Health and Lifestyle Limited (“AHLL” or the “company”) is a wholly owned subsidiary of Apollo Hospitals Enterprise Limited (“AHEL” or “Apollo”), a long standing IFC client and the leading private healthcare provider in India. Initially operating neighborhood family clinics under the franchise business model, since 2011 the company has been refocused as an owner and operator of specialized clinics covering a number of key areas of growing demand including specialty care.As on 30th June 2015, AHLL directly owned Apollo Clinics (30 owned and 34 franchisee clinics) and Diagnostics (four reference laboratories and 21 collection centers). In addition, the company has following operations under its subsidiaries:Apollo Sugar Clinic Limited (ASCL): Centers focusing on Type 2 diabetic and pre diabetic patients. Currently, 25 centers either as advanced diabetic management center (ADMC) in-hospital, stand-alone and shop-in-shop (SIS i.e. located within a clinic). Apollo Dialysis Private Limited (ADPL): operating dialysis centers; currently four centers (two stand-alone, one SIS and one public-private-partnership center within a government hospital). Alliance Dental Care Limited (ADCL): currently 73 centers; either as stand-alone clinics or SPAs or express SIS located in a clinic or a hospital. Apollo Specialty Hospitals Private Limited (ASHPL) – Cradle (women and children focused hospitals) and Spectra (ambulatory facilities focusing on minimal invasive/short stay surgeries) are operated under ASHPL. Currently company has five own Cradle centers and three more Cradles will get operational (including a standalone in-vitro fertilization center) in second half of FY16. As regards Spectra, company has 10 centers across India which are mainly the centers acquired as a result of acquisition of Nova Specialty in 2015. One Cradle is operated under the franchisee model.The company plans to grow the number of facilities under its control to approximately 1,300 by 2019.The proposed investment is an equity investment of US$38 million, alongside a reputable co-investor, for funding (a) expansion capex to open approximately 1,100 new centers, and (b) to cover the losses that will continue to accrue until the centers reach maturity (“the project”). The project also includes the acquisition of “Nova”, India’s leading ambulatory care provider, which was closed earlier this year.