FDI in healthcare: US-based BAYADA home healthcare enters India with a strategic acquisition in Chennai-based IHHC
United States home healthcare giant, BAYADA Home Health Care, announced its entry into the Indian home healthcare space with the acquisition of a strategic 26% stake in Chennai-based India Home Health Care (IHHC).
This partnership is privately-held BAYADA’s first investment outside of the United States. The company operates over 250 offices in 25 states in the US and projects revenues of over $ 1 billion in the coming financial year. Mark Baiada, Founder and President, BAYADA, took the opportunity to talk about the vast potential that home healthcare in India holds, comparing the nascent nature of the market in India to the environment in which BAYADA was founded in the United States. Baiada is immensely excited by the opportunity India presents.
BAYADA and IHHC hope to help people heal faster in the comfort of their own homes through provision of high quality trained staff. BAYADA is also developing in house telemedicine capabilities which IHHC will have access to. IHHC’s staff is focused on helping patients to the best of their capacity and often provides emotional support in addition to medical and caretaking assistance.IHHC announced the launch of a number of care packages for a variety of different needs in India including post-CABG care, post-knee/hip replacement care, post transplant care, elderly care with special packages for NRIs, and care packages for children with special needs. These packages have been designed using BAYADA’s 40 years of experience in these fields, and customized to suit the needs of the Indian market.
IHHC is also focused on providing dignity of labor to the unorganized domestic help market by providing them with constant trying with the help of BAYADA and an opportunity to be identified as professional care takers. Staff members spoke of the opportunities for specialization in different areas of nursing on a case by case basis, unlike what is typically found in a hospital.
While BAYADA is evaluating numerous other markets, BAYADA’s focus remains on India and Mark opines that they are committed to staying in India for the long term. They do not intend to invest in companies outside of IHHC in India. “We are fully committed to IHHC and helping more families in India. We will do all that we can to help IHHC, and are committed to our partnership,” said Mark.
IHHC was founded in 2009 by V Thiyagarajan and Sameer Mehta to provide quality care to patients in their own homes, and currently operates in Chennai and Bangalore. Thiyagarajan, the promoter of Sybrant Technologies, an enterprise application developer, has been a serial entrepreneur with multiple successful ventures in the field of IT. Mehta, CEO of Dr Mehta’s Hospitals, one of the oldest hospital systems in the country, is a well-known angel investor, and an active member of The Chennai Angels.