Manipal Hospitals acquires 87% stake in Kolkata’s Medica Synergie

The latest acquision will see the Karnataka-based hospital chain increase its bed count from 9,500 currently to more than 10,500, making it the largest healthcare group in the country, it said in a statement.

Earlier, Apollo Hospitals was the biggest hospital chain in the country with around 10,103 owned and operated beds as of 31 March 2024. 

Expansion strategy

This acquisition also aligns with Manipal Hospitals’ strategy of expanding its footprint and presence in Eastern India, including Kolkata, Siliguri, and Ranchi, said Dilip Jose, MD & CEO.

“With this acquisition Manipal Hospitals builds on its strong presence in Eastern India, enabling us to expand our reach and meet the healthcare needs of this under-served region. We will integrate Medica Synergie into our portfolio and rebrand it,” Jose added.

Backed by the Singapore-based Investment company, Temasek, Manipal Hospitals expects to consummate the transaction after the completion of a few customary processes. With the acquisition of Medica, Manipal Hospitals will have 37 hospitals spanning across19 cities in 14 states. 

This acquisition signifies yet another significant investment by a hospital chain aiming to broaden its presence in the country. Last year, the hospital group also announced a similar acquisition of an 84% stake in Emami Group’s Kolkata-based AMRI Hospitals Ltd.

Manipal is not the first one to announce and undertake capacity expansion. Hospital chains like Aster DM, Max Hospitals, and Paras Health have announced similar plans in the recent past.

Private hospital growth

Aster aims to increase its bed capacity to more than 10,000 over the next three years through acquisitions and organic growth; the hospital chain currently has around 5,000 beds, up from 4,800 last year. Max Healthcare recently, announced investments of around ₹5,000 crore to double its capacity across its network of hospitals by adding 4,200 beds in the next four to five years. The group currently has 4,000 beds and plans to raise it to 8,200.

While Paras Health, a Gurugram-based hospital chain, recently, announced the setting up of a ₹250 crore, 300-bed hospital in the Gurugram city, elevating its capacity by 15%. The hospital chain aims to achieve over 3,500 beds by the year 2025.

These private hospital chains are investing on the back of rising income and insurance penetration in the country. The Bharatiya Janata Party has in its manifesto announced to provide free insurance to all senior Indian citizens, who are above 70 years old.

“By leveraging the clinical expertise and infrastructure of Medica Synergie, along with the combined operations of its extensive network, Manipal Hospitals will be well-positioned to meet the increasing demand for high-quality tertiary and quaternary healthcare services in Eastern India,” it said in a statement.

The advisors for Manipal Health Enterprise Pvt. Ltd. in this transaction were Allegro Capital Advisors, Khaitan and Co. and KPMG.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 29 Apr 2024, 10:13 PM IST