IHH Healthcare Targets 10,000 Hospital Beds in India by 2031

Fortis plans to add around 400 beds this year, with capital expenditure projected at approximately INR 700 Cr.

Kuala Lumpur-based private healthcare services provider IHH Healthcare has announced plans to nearly double its operational hospital capacity in India to about 10,000 beds by 2031, as the healthcare group looks to strengthen its presence through hospital expansion and acquisitions.

IHH Healthcare has built a significant private healthcare network in India through Fortis Healthcare and Gleneagles Healthcare India.

The network currently spans 36 hospitals with around 6,100 operational beds across 12 states, including major markets such as Delhi, Mumbai, Bengaluru, Chennai, Punjab, Kolkata, and Hyderabad.

Fortis Healthcare Managing Director and CEO Dr Ashutosh Raghuvanshi said the planned expansion would rely largely on the company's internal cash generation for brownfield projects.

Debt would primarily support acquisitions, while equity could be considered for larger transactions.

“We have strong support from IHH, which has already stated its intention to double down on the India opportunity, and since the company’s operations have already matured, further building this platform makes a lot of sense,” said Fortis Healthcare Managing Director & CEO Dr Ashutosh Raghuvanshi.

Fortis plans to add around 400 beds this year, with capital expenditure projected at approximately INR 700 Cr.

The company has also indicated that its financial position provides room to raise additional debt, with its debt-to-EBITDA ratio currently at 1.08 times.

Beyond adding physical capacity, IHH Healthcare expects stronger operating performance from its India business.

Fortis is targeting annual revenue growth of more than 15%, while EBITDA margins are expected to improve by around 1.5 percentage points each year from the current 21%-22% range.

Margins could eventually stabilise at approximately 25%-26% as newer hospitals mature.

International healthcare demand is another component of the group's India strategy. Fortis' oncology centre in Gurugram receives about 30% of its patients from international markets, particularly the Middle East, Africa, and Central Asia.

While geopolitical disruptions have affected some patient flows, Fortis sees Africa and Bangladesh as important opportunities for future medical tourism.

IHH Healthcare also plans to strengthen ambulatory care, particularly in Malaysia.

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