IHH Plans Major Stake Increase in Fortis to 50%, Reveals CEO Nair

IHH Healthcare seeks majority influence with a 50% Fortis stake, up from 31%, as stated by CEO Prem Kumar Nair. The ₹2,500 crore investment will drive 2,000 new beds and advanced care infrastructure by 2028.

IHH Healthcare, a major player in Asia's healthcare sector, aims to raise its stake in India's Fortis Healthcare from the current 31 percent to 50 percent, Prem Kumar Nair, the group managing director and CEO of IHH Healthcare, said in a recent interview.

"India is now one of our high-priority markets," said Prem Kumar Nair, group CEO of IHH Healthcare. The resolution of the mandatory tender offer (MTO or open offer) issue opens up an opportunity for us to invest more and help Fortis grow into a very high-quality hospital group."

Fortis Healthcare operates over 30 hospitals across India, with a focus on multi-specialty care. IHH, headquartered in Malaysia, runs more than 80 hospitals in nine countries, including Parkway Pantai in Singapore and Gleneagles in the UK. The two companies have collaborated on projects like a new hospital in Punjab and expansions in other regions.

Nair said the ambition is to increase its stake in Fortis Healthcare to 50% over the medium term, as the group looks at increasing the beds to 10,000 in India by 2030, but he is clear that growth would not dilute clinical quality.

Ashok Pandit, group chief corporate officer (CCO), said the group is looking at integrating Gleneagles into Fortisis and then further increasing its investments in India. "Our long-term or medium-term ambition is to be at the 50% mark when it comes to a Fortis shareholding level," Pandit said.

This plan aligns with IHH's broader expansion in India. The company has invested over $1 billion in the country since 2018. Recent efforts include joint ventures and new hospital developments. Nair pointed to India's rising demand for quality healthcare, driven by an aging population and increasing medical tourism.

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