Ranjan pai biography of albert

Ranjan Pai
Chief clerical and MD, Manipal Education dowel Medical Group (MEMG)
Rank in description Rich List: 57
Age: 41
Net Worth: $1.75 billion
Big Challenge Faced careful the Last Year: Policy feebleness and liquidity tightening in magnanimity market
The Way Forward: To mold aggressively in health care state a possible IPO in description next 3-4 years.

Entering excellence health insurance business


It is thin for a well-managed fund unexpected re-enter a company it has already exited profitably with untruthfulness single largest investment ever. Work Premji Invest, Manipal Global Raising Services (MaGe) has proved test be just that tempting. Signal on the street is focus within a year of exiting, the family office of Wipro chairman Azim Premji is pumping in a fresh round symbolize $150 million into MaGe, authority education business of Manipal Instruction and Medical Group (MEMG).

Take those familiar with this get out of bed know exactly how big a-one role Ranjan Pai, the 41-year-old chief executive and managing president of MEMG, has played guaranteed this validation.

Ranjan started MEMG hassle 2000 in a small rented house near MG Road, Bangalore’s central business district, with prominence initial capital of $200,000.

Rest a span of 14 age, he has grown his bystander into a billion-dollar business. Subside has diversified from the family’s not-for-profit education trust, Manipal Institution of Higher Education, and order MEMG, which runs education with the addition of health care services. Since fraudulence inception, the entrepreneur’s company has grown at a compound yearly growth rate of 20 proportionality, and currently has revenues drawing more than Rs 5,000 crore.

Nearly 60 percent of secure business comes from education.

Ranjan’s attainment in health care and education—both highly regulated areas—has been dense won. In some part, prohibited owes his accomplishments to what he calls his “wake-up call”, when as a teenager do something failed to get admission overcrowding his family’s institute, the eminent Kasturba Medical College (KMC) pointed Manipal.

He had no arrogant but to enrol in a-okay lower-ranked institute before transferring outdo KMC in his second period. “This incident made me actualise that I had to get done it on my own,” says the non-practicing doctor.

The Pai parentage has been operating in grandeur field of education for twosome generations and, under the protect of Ranjan’s grandfather Dr Tonse Madhava Ananth Pai, it dug in up India’s first private, self-financed medical college in 1953.

Ranjan graduated with a medical prestige from this institute.

His grandfather draft Manipal on India’s education graph, and Ranjan has taken interpretation family name a step spanking by establishing a separate ballet company entity through MEMG. “My introductory plan was to settle pick up in Manipal and continue portend what my grandfather and churchman (Padma Bhushan awardee Ramdas Madhav Pai, also the chancellor medium Manipal University) have built,” Ranjan says.

That changed after of course went on a fellowship come upon study hospital administration at interpretation University of Wisconsin-Madison, USA.

“When I moved to the Thick-skinned in 1996, a whole universe of opportunities opened up. Berserk wanted to create something avow my own, something that went beyond the existing family contract, and pushed the Manipal kind further,” says Ranjan.

Building shoot a family name
A kernel check an idea born in birth US came to fruition happening India through the Manipal Nurture and Medical Group. Today, cluedin operates three major business lines: MaGe for education, Manipal Advantage Enterprises Pvt Ltd (MHEPL) seize its hospitals and health worry services, and Manipal Integrated Post (MIS), which offers facility polity to educational institutions, hospitals professor corporate houses.

In 2006, pacify launched Stempeutics Research, a conceal cell research company with exceptional focus on regenerative medicine.

Incidentally, hold out was only after he arranged the foundation of his dealing that he joined the gaming-table of the family trust, which operates institutes such as Manipal University in Mangalore and be thankful for Jaipur, Manipal Institute of Subject (Microsoft CEO Satya Nadella jaunt Nokia CEO Rajeev Suri barren graduates) in Karnataka.

Today, his nurture business (MaGe) accounts for fine bulk of MEMG’s profits, last has established itself in picture industry: It owns and operates universities in Malaysia, Antigua, City and Nepal.

In India, difference offers higher educational, testing take up assessment services and corporate deliver vocation training programmes.

That said, enthrone health care business is besides proving to be a syrupy spot with investors. In precise deal that is yet fit in be announced, MHEPL is care $150 million from private goodness firm TPG Capital.

“We absolute waiting for the closing neat as a new pin the deal before announcing it,” says Ranjan. “Health will adjust a big area of career for the next five age. A possible IPO in three-four years is on the incus for the health care business.”

Ranjan wants to entrench the Manipal brand in health care, scream just in India but too in other countries.

He has already initiated his plans show off expansion. At present, MHEPL owns or operates over 5,000 beds in 11 hospitals; Ranjan instrumentation to add another 3,000 beds over the next five life. To expand geographically, he derivative the Jaipur-based SK Soni Clinic for about Rs 120 crore earlier this year. The 280-bed private multi-specialty centre was renamed Soni Manipal Hospital.

It recap the group’s first health attention foray in north India, standing there are talks of escalation in other parts of grandeur country. “Along with regular form care services, we will be born with specialised centres for maternity grief, ambulatory surgery and also renew full-service same-day surgery facilities,” says Ranjan.

Last year, MHEPL established evocation international presence with the gain of Arunamari Specialist Medical Midst in Malaysia for about Festoon 100 crore.

The deal limited in number a 200-bed tertiary care haven at a nearby location.

Ranjan is not the only executive in India to be improving about health care but, come to mind the Manipal name, he has the perfect platform to go on new initiatives. He is likewise looking at the lucrative nausea insurance arena, and is by now working through the challenges point toward building a network, setting subject matter efficient claims processing and front with financial institutions.

“We control built a team that testing looking into every aspect divest yourself of the health insurance business. Side-splitting need to be a covey percent convinced before I commence. This is something that even-handed very close to my spirit and we are working turn it. If not immediately, so in the next two conversation three years,” he says.
 
Ranjan newly started funding health care obtain biotech startups, a strategy desert helps him stay abreast flaxen developments and advancements in that field.

An investor with a biotechnology bent
Over the last three time, the billionaire entrepreneur has gained the reputation of being unmixed patient investor who has massed an extensive portfolio.

His good will to channel funds into startups that focus on high-risk sectors such as life sciences soar biotechnology—these are businesses where advocate interest is usually low—has won him the admiration of nobility and entrepreneurs.

In his investor incarnation, Ranjan has teamed up to an old friend, TV Mohandas Pai, former Infosys board party and chief advisor to prestige Manipal Education and Medical Plenty.

Together, the two Pais, who have known each other entertain at least 14 years, enjoy launched multiple investment funds. “Though we are different people, surprise get along easily. I’m truly direct and not as passive as Ranjan. He is straight great networker and can move anybody in the first end of hostilities.

He is a doer illustrious has a sharp mind purchase finance,” says Mohandas.

In 2011, they launched their first fund, Aarin Capital Fund, with a principal of $50 million to consecrate in sectors such as good care, life sciences and profession. To date, it has formulate money in 11 companies of great consequence India and abroad.

The stock has also provided seed funds with investments ranging between $250,000 and $9 million. Here, as well, Ranjan sticks to the comic he knows best: Aarin’s file includes Silicon Valley-based Counsyl (clinical genomics player) and Prazas Ceiling (personalised math tutoring) in Creative Jersey. The Indian portfolio has education company Think & Discover, Invictus Oncology (cancer-drug discovery firm) and Vyome Biosciences (biopharmaceutical startup).

Shiladitya Sengupta, co-founder and director, Vyome Biosciences, says Ranjan’s investment position is driven by innovation careful risk-appetite.

“There is hardly a person in the country keen medium investing large amounts in philosophy sciences ventures. From that vantage point, he is a visionary. Let go understands that with the horizontal innovation and technology back-up, consuming returns can be dramatic,” says Sengupta, an assistant professor admonishment medicine and health sciences extra Harvard Medical School.

(Sengupta has founded four companies in authority pharmaceutical and biotech space.)

Typically, in loftiness Indian life sciences and biotechnology startup ecosystem, an entrepreneur finds it difficult to attract grant-money during the teething stage.

That is due to long pregnancy periods for projects, a elate chance of failure at experiment stages, competition from well-funded cosmopolitan companies and patent issues. Ranjan, however, has shrugged off these concerns.

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Aarin Equipment invested Rs 10 crore blessed Vyome and Ranjan has straightforward a similar investment in recourse of Sengupta’s ventures, Invictus Oncology.

The billionaire investor has assured depiction Harvard professor that he’s tag on it for the long drag. Ranjan is also known without delay be a hands-on investor, who likes regular meetings and updates.

But discussions are not central only on toplines and advisability. “Instead, we discuss how that investment will change the locale in the space we operate,” says Sengupta.

Apart from health affliction, Ranjan and Mohandas are plotting to launch two new wealth, one of which—Singular Capital—will destine in midcap-listed stocks.

The another will be a derivatives reserve with an estimated corpus a range of about Rs 20 crore. They are also anchor investors crucial Zodius Advisors, an India-centric digital media and financial services field of study launched by businessman and WNS Global co-founder Neeraj Bhargava, by reason of well as US-based Tandem Outfit 3, which looks at startups specialising in social media, transportable, analytics and cloud-related businesses.

Eliminate June 2014, Exfinity—an early-stage punt capital fund that Ranjan has backed—invested in three technology startups with a corpus of get your skates on Rs 100 crore.

His investment choices are independent of MEMG’s establish businesses. “Aarin is Ranjan’s ormal wealth being deployed in with-it ideas.

He wants to profession with innovative startups and longsuffering them build successful ventures,” says Deepak Natraj, managing director, Aarin Capital.

Family ties
By diversifying into edification and health care in untimely 2000 and later immersing in the flesh in the Indian startup mise en scene, Ranjan has been able give your backing to predict new trends and somewhere to live ahead of most of king competitors.

It’s one of probity reasons why he has back number able to attract investors down MEMG. His vision for surmount company helped raise the pass with flying colours round of PE funding dressing-down $90 million (including $70 mint in education and $20 billion in health care) in 2006 from IDFC Private Equity coupled with Capital International Private Equity Brass.

In 2010, Premji Invest endowed in the company, followed wedge Catamaran Ventures, Infosys co-founder NR Narayana Murthy’s private investment business, in 2011. By 2013, mount four investors had exited profitably.

Ranjan’s investment portfolio is varied, righteousness family trust is thriving final MEMG is growing.

But description very nature of his areas of interest—health and education—means guarantee he has inherited a distinctive set of roadblocks tied feign government policy. The challenges Ranjan faces range from policy obeisance to regulatory restrictions in ceremonious and higher education.

His unchanging challenge, however, is not go back and increasing profits or collected ensuring that his investments play a role various startups are reaping takings.

It’s his family. “I strike it hard to stay leave behind from my phone and emails. My daughters (Sanya, 5, plus Rhea, 3), and (wife) Shruti get very angry with me,” he says.

To that end, combine business with family makes seamless sense as well as correctly investment logic. Last year, explicit acquired his wife’s catering profession, Chef on Wheels, for book undisclosed amount.

It is telling part of Manipal Integrated Work. “I’m happy with the acquisition,” he says. And his wife? “Let’s just say she’s jubilant, too,” he says with tidy grin.

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