CCI Clears Apollo Hospitals Group Restructuring Plan

This step separates the group’s digital health and pharmacy operations from its hospital network.

The Competition Commission of India (CCI) has approved a major restructuring plan by Apollo Hospitals (AHEL), allowing the group to consolidate its digital health and pharmacy businesses under a new entity, Apollo Healthtech (AHTL).

The move is part of Apollo’s strategy to unlock value and enhance growth across its non-hospital operations.

Under the approved plan, a defined business undertaking of AHEL will be demerged into AHTL.

This step separates the group’s digital health and pharmacy operations from its hospital network, giving each segment greater focus and operational clarity.

Apollo Healthco (AHL) and Keimed will merge with and into AHTL. The merger is aimed at streamlining operations, reducing overlaps, and consolidating healthcare and distribution businesses under a single platform.

As part of the restructuring, AHTL will acquire a 74.5% stake in Apollo Medicals (AMPL) from existing shareholders.

With this acquisition, all pharmacy and digital health assets will come under one entity, preparing AHTL for a separate listing on stock exchanges in the next 18–21 months. The listing is expected to attract investment and provide a clear valuation for these high-growth businesses.

Apollo Hospitals has said the restructuring will support its plan to target INR 25,000 Cr. in revenue by fiscal 2027 through its omnichannel pharmacy and digital health platform.

Rising healthcare consumption, expanding pharmacy networks, and growing adoption of digital health solutions are expected to drive this growth.

Market analysts say the CCI’s approval is a crucial step in executing Apollo’s long-term strategy. By separating its fast-growing digital health and pharmacy units from the hospital business, Apollo can unlock shareholder value and improve operational efficiency.

The restructuring also aligns with broader trends in the Indian healthcare sector, where digital solutions and integrated pharmacy networks are becoming increasingly important.

Dedicated management and strategic focus on these businesses are expected to enhance innovation and scale.

With the CCI nod, Apollo Hospitals can now move forward with implementing the restructuring, consolidating its entities, and preparing for the listing of AHTL.

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