An oncologist and entrepreneur, Dr. B. S Ajai Kumar owns approximately 24.3% of HCG, and he has also been Non- Executive Director of the Company since the year 2000 the Chairman and Chief Executive Officer of the Company since the year 2006. The Sponsor group owns 29% of the pre-IPO shareholding and includes 4 other sponsors including Dr. Ganesh Nayak who owns 0.4%, Dr. BS Ramesh who owns 0.4%, Dr. KS Gopinath who owns 0.6% and Dr. M Gopichand who owns 1.2% of the Company (together the “Sponsors”). Apart from the above mentioned Sponsors, private equity investors, Premji Invest, Temasek and Milestone Private Equity currently hold approximately 20.9%, 16.02% and 17.5% stakes respectively in the Company.

The Company plans to add 12 new CCCs which will add 915 beds to its existing portfolio of 14 centers. The Company also plans to invest in medical equipment as well as invest in IT over the next few years. In addition, the Company plans to pre-pay some of its existing debt to manage leverage on its balance sheet. The proposed IFC investment will part fund the above plans of the Company. The proposed IFC equity investment is for up to US$15 million equivalent (INR 1,000 million) in HCG’s planned IPO.

19.90 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	19.90

* These investment figures are indicative

The CCCs to be funded are located across multiple cities in India. ~70% of the beds are expected to be opened in Tier II and III cities Nagpur, Kochi, Kanpur, Baroda, Vishakapatnam, Gulbarga, Jaipur, Bhavnagar
. The Company currently has a presence in 8 Tier II and III cities Shimoga, Nashik, Hubli, Ranchi, Cuttack, Vijaywada, Ongole, Ahmedabad
and 2 low income states in India (Jharkhand and Orissa). The expansion plans include new CCCs in 8 Tier II cities and 3 low income states where there is often a severe undersupply of quality cancer care treatment.

- Expand access to high quality and affordable healthcare across India especially in Tier II cities: The proposed investment in HCG is aligned with IFC''s strategy in healthcare which includes partnering with leading providers to support their expansion into underserved markets, including in Tier II/III cities and low income states. The proposed investment is expected to help the Company''s growth plans of adding 915 beds, of which ~630 beds or ~70% will be in Tier II and the low income states of Madhya Pradesh, Uttar Pradesh and Rajasthan. The quality of services provided is expected to have a demonstration effect for other healthcare providers to establish operations in these cities.

- Increase in patients reached: Since the Company is planning to increase its bed capacity by over 80% over the next few years, the Project is expected to increase the number of patients reached by quality cancer care network significantly over the next few years.

- Enhancement of medical infrastructure: The Project will aid enhancement of the country''s oncology medical infrastructure and improve access to quality oncology healthcare services across Tier II cities in India. The proposed hospitals would provide access in areas where good quality cancer care equipment and services are often quite limited.

- Employment generation: The Company currently employs approximately over 3,800 employees and medical consultants; the Project is expected to increase jobs to employees and medical consultants, including employment increasing in Tier II cities and low income states.

- Providing access to specialized healthcare for the lower income segments of the population: The Company, through the HCG Foundation, performs surgeries to population in the lower income segment. Further, has patients from the Government schemes catering to the bottom of the pyramid population. The Project is expected to increase the number of patients reached through these efforts.

- Stamp of approval: IFC''s investment will provide the Company the credibility of having an internationally recognized investor who will provide support for the Company''s IPO execution as well as some of the Company''s practices in the areas of corporate governance, environmental and social standards as well as insurance.

- Expertise: IFC will share its significant industry knowledge and expertise gained from its previous investments in the healthcare sector globally and across various emerging markets. The Company will also be able to leverage IFCs various networks and contacts in the healthcare industry in India and Africa as it expands its cancer care networks in the country.

- Environment and Social standard setting: The Company will also benefit from IFC''s Performance Standards and assistance in implementing an Environmental and Social Action Plan that could make the Company''s Life and Fire safety parameters comparable to international standards. This could also have demonstration effects on the overall sector.

This is a Category B project according IFC’s Procedure for Environmental and Social Review of Projects.



Key risks and issues related to this project include: adequate social and environmental assessment of the impacts of the Project; the Company’s capacity to manage its social, environmental, health and safety performance, and engage with local communities in accordance with local requirements and IFC Performance Standards and EHS Guidelines; assurance of fair, safe and healthy working conditions; management of wastes (particularly biomedical waste) and emissions; impacts of transport infrastructure on nearby communities during construction, life and fire safety management for all public use buildings in accordance with international fire safety codes and impacts of land acquisition as applicable.



Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project are provided in the Environmental & Social Review Summary.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.