NMC Rising Giants: The Manghat BrothersÔÇÖ Journey to the Top
Mentored by none other than the iconic Dr. B. R. Shetty, Prasanth and Promoth Manghat have played a pivotal role in the growth of NMC Healthcare and UAE Exchange respectively, propelling the companies to scale new heights through acquisitions and consolidations aimed at creating new market giants.
At a glance, Dr B.R. Shetty’s business interests could look more healthcare focused and for good reason. The tycoon’s New Medical Centre or NMC Healthcare as it is more commonly called has been in the limelight for making large strides in the market as it charts an ambitious growth plan that envisions hard core expansion through acquisitions and synergy. But Dr Shetty’s interests are myriad as they range from healthcare, food and beverage and financial services. Aside from healthcare, Dr. Shetty’s interests in the financial services have also grown rapidly. He owns one of the region’s major money transfer firm UAE Exchange along with companies such as Xpress Money and Travelex. Leading the charge in Dr Shetty’s two fast growing portfolios are the brothers Prasanth and Promoth Manghat.
Prasanth Manghat is the Deputy CEO and Board Member of NMC Healthcare while Promoth Manghat is the CEO of UAE Exchange. Chartered accountants by profession, the brothers have helped steer Dr. Shetty’s healthcare and financial services NMC businesses to further growth. Prior to joining the U.A.E. businessman’s team, Prasanth worked at Kotak Mahindra as the Operations Head for Kerala-Tamil Nadu (India) region while Promoth started as the Internal Controls Assistant Manager at Alstom Limited. Promoth joined UAE Exchange in April 2001as an account manager during the company’s entry into India. The opportunity to be through those initial days of the business in India was an extensive learning experience, remarks Promoth. Meeting Dr. Shetty via Promoth later paved Prasanth’s path to NMC Group with the elder Manghat joining NMC in January, 2003. Impressed by a paper presentation by Promoth, Dr. Shetty entrusted him with UAE Exchange’s overall management that saw the younger Manghat brother shift base to the company headquarters in the Emirates in 2003.
With the Manghat brothers in the lead, the last 15 years have been of immense growth and boom to UAE Exchange and NMC. Promoth has played a major role in transforming UAE Exchange into a global company. He served as the firm’s Financial Manager from November 2003 to September 2005 and was later promoted to the position of Vice President—Operations in 2005. In January 2009, he was appointed Vice President—Global Operations and was later promoted as the Deputy CEO in December 2014. He became the CEO of UAE Exchange in March 2015.
Working alongside Dr B R Shetty and Sudhir Kumar Shetty, Promoth propelled the firm to achieve stellar results and spearheaded the brand’s expansion, making UAE Exchange a household name not just in India and the U.A.E. but also in the GCC and America. Today UAE Exchange handles eight billion out of 69 billion NRI’s remits back to India, which is around12-13% of all remits. Promoth today steers a firm that has presence in 31 countries and employ about 8,500 employees. In 2014, he was instrumental in the decision to acquire Travelex, the British money exchange business that added another 1,500 branches and 8,000 employees to Dr Shetty’s financial services portfolio. Jointly, the companies serve around 45 countries. Promoth’s plans for UAE Exchange are nowhere close to a draw. The resourceful CEO is planning to integrate both UAE Exchange and Travelex and is also looking to establish a presence in India’s banking sector in the near future.
Longer Branches, Stronger Roots
Upon his entry into the group in 2003, Prasanth Manghat was entrusted with the role of managing the finances for Dr Shetty’s darling asset—Neopharma. As the only manufacturing company in the entire portfolio of Dr Shetty, Neopharma posed a unique set of challenges that gave Prasanth the experience to steer finances for a long gestation, capital intensive and asset heavy company. By 2009, Neopharma was already amongst the leading generic companies in UAE with exports across 15 countries. Same year he was appointed the Chief Financial Officer of NMC Group. In June 2014, he was elected as NMC’s Board Member and is serving as the Deputy CEO since January 2015.
Prasanth spearheaded the successful listing of NMC Health in the premium segment of the London Stock Exchange and from there on setting the path to achieve the highest honours within the industry. NMC Healthcare raised £117 million (Dh688.5 million), becoming the first company from Abu Dhabi to be listed on the London Stock Exchange. In 2010, NMC’s equity was $150 million and in just a span of four years, the company’s valuation has multiplied more than 20 times to cross $3 billion.
Chalking out NMC growth plan in the post IPO period, Prasanth embarked on a series of acquisitions aimed at capability building. The acquisitions of Clinica Eugin in Spain and Fakih IVF in Middle East have led to the creation of a strong fertility vertical. Meanwhile the acquisition of Provita has put NMC in the long term acute care market and Americare in the homecare segment. A geographical synergy was also achieved when NMC acquired Sunny Medical Centre.
Business is Beyond Surplus
The Manghat brothers attribute their success to a delicate blend of asset identification skills, business conceptualization, corporate governance, transparency, fundraising, strategy formulation and employee care. Their secret to success is the fine art of corporate negotiating skills something that they continue to imbibe to this day from their mentor Dr B R Shetty and skilfully combine them with their astute financial wisdom.
Prasanth and Promoth, regardless of their feats in their respective businesses, say they are grateful to Dr B.R. Shetty for providing the right opportunity at the right time. Both brothers clearly see Dr Shetty as not their boss but a very helpful mentor. The businessman’s ability to perceive growth beyond profits and his foresight are his mantra for success, says Promoth. According to Prasanth, the business mogul’s ability to analyse a person’s capability and to lead without unduly pressuring his employees are Dr Shetty’s strong traits.
As two sides of the same coin, the Manghat brothers continue to take NMC Healthcare and UAE Exchange to further heights but hold their mentor’s advice of looking beyond profits close to their hearts and minds.