Mumbai, Sept. 2: Fresenius Medical Care, the German dialysis products and services provider, is acquiring an 85 per cent stake in Sandor Nephro Services from a group of investors for an undisclosed sum.

Sandor operates under brand name Sparsh Nephrocare and has over 50 dialysis centres in 42 cities.

Fresenius also plans to invest around Rs 150 crore over two-to-three years in 200 dialysis centres across the country. Fresenius Medical Care runs three such centres in India.

Established in 2011, Sandor Nephro is the country's second-largest dialysis care provider. The company also offers a facility to conduct dialysis at home. Following a physician's prescription of a home hemodialysis, it sets up equipment such as a dialysis machine, a portable RO plant and blood pressure monitors at the patient's house.

The acquisition will enable Fresinius Medical Care to strengthen its core business in one of the fastest growing economies of the world, it said.

Sandor Nephro Services is expected to generate a revenue of around $3 million in 2016.

Fresenius Medical Care expects the investment to be accretive in 2017 on earnings after tax. The German company did not disclose the group of investors who exited. However, it is understood that Tata Capital was one of the sellers. Tata Capital had invested in Sandor Nephro in 2014.

"With the acquisition of Sandor Nephro Services, we will reach a new scale in the dialysis business in India. We have been in the country for over 15 years primarily with our product portfolio and are now taking the next important step. This is a unique opportunity to become one of the major players in the dialysis service market where we expect a strong growth and where we will help to treat chronically ill patients," Rice Powell, CEO of Fresenius Medical Care, said.

Sparsh Nephrocare co-founders Saurav Panda and Gaurav Porwal have committed to stay with the company for at least three years.

The company is targeting to become the largest pan-India dialysis provider through a continuous expansion in smaller towns and cities, Punit Kohli, Fresenius Medical Care India MD, said. The company may also look at manufacturing products in India at a later stage.