BY THE DIGITAL HEALTH LEADERS FOR THE DIGITAL HEALTH COMMUNITY
BY THE DIGITAL HEALTH LEADERS Written by : Dr. Aishwarya Sarthe
December 31, 2024
The healthcare sector in India has undergone a major shift in 2024, driven by mergers and acquisitions (M&A) that are reshaping the industry’s future. With rising demand for affordable and high-quality healthcare, alongside the rapid adoption of technology, companies are increasingly looking to tap into new markets beyond major cities.
The shift towards Tier 2 and Tier 3 cities, which have long lacked adequate healthcare infrastructure, is opening up fresh growth opportunities. As the healthcare ecosystem evolves, M&A activity is intensifying, with businesses keen to scale, innovate, and meet the demands of underserved populations.
This article delves into the most significant M&A developments in the healthcare sector this year, highlighting the key players, investment trends, and the transformative impact on India’s medical ecosystem.
Max Healthcare Institute has been making significant strides to expand its healthcare presence across India. The company’s latest acquisitions focus on strengthening its foothold in Tier-II cities and larger markets, aligning with its vision of enhancing healthcare infrastructure and service delivery in key regions.
In February 2024, Max Healthcare completed the acquisition of Alexis Multi-Speciality Hospital (Alexis) in Nagpur for INR 412 Cr. This acquisition is expected to enhance Max Healthcare’s presence in Maharashtra and Tier-II cities, capitalizing on the region’s robust healthcare infrastructure and clinical talent.
Max Healthcare plans to expand Alexis Hospital’s bed capacity from 200 to 340 beds, subject to regulatory approvals. The hospital currently reports revenue of INR 150 Cr and EBITDA of INR 25 Cr.
In a move to solidify its position in Uttar Pradesh, Max Healthcare acquired Sahara Hospital, a 550-bed facility in Lucknow, in December 2023 for INR 940 Cr. This acquisition was followed by an announcement in April 2024 regarding an investment of INR 2500 Cr to set up a 500-bed hospital at Shaheed Path in Lucknow. The company also revealed the renaming of Sahara Hospital to Max Super Speciality Hospital, Lucknow.
The new hospital at Shaheed Path is part of Max Healthcare’s broader strategy to enhance healthcare services in Lucknow and surrounding regions. The company plans to expand its capabilities in high-end medical technology.
In a further expansion in the National Capital Region (NCR), Max Healthcare announced in September 2024 that it would acquire a 64% stake in Jaypee Healthcare for INR 1,660 Cr. This acquisition includes Jaypee Hospital in Noida, a 500-bed facility, and a 200-bed facility in Bulandshahr, boosting Max Healthcare’s reach in NCR, one of India’s largest healthcare markets.
This acquisition is part of the company’s strategy to support its ongoing expansion in the region. Jaypee Healthcare reported revenue of INR 421 Cr and EBITDA of INR 70 Cr for FY23-24.
Healthcare Global Enterprises (HCG), a leading cancer care provider, acquired a 51% stake in Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI) in Visakhapatnam for INR 414 Cr. HCG aims to increase its ownership in MGCHRI by an additional 34% over the next 18 months, thereby enhancing its presence in the Vizag region.
Raj Gore, CEO of HCG, stated, "We are focused on expanding our reach and taking HCG’s comprehensive & quality cancer care services closer to patients in and around Bengaluru." The acquisition will bolster HCG’s operations in the region, with plans to add more beds to the existing 196-bed capacity.
KKR & Co. announced plans to acquire a 70% controlling stake in Baby Memorial Hospitals (BMH) in Kerala for $300 million (INR 2500 Cr). With this acquisition, KKR aims to expand its presence in the Indian hospital sector. BMH operates three hospitals with 500 beds and provides tertiary care services across multiple specialties.
Sources revealed that KKR intends to use BMH as a platform to acquire and build more assets across India. This acquisition aligns with KKR’s strategy to invest in the rapidly growing healthcare sector in India, particularly in Kerala.
In July 2024, MGM Healthcare acquired SevenHills Hospital in Visakhapatnam as part of the corporate insolvency resolution process for SevenHills Healthcare. MGM Healthcare’s acquisition will mark its first expansion outside Chennai, taking the company’s bed capacity to over 1,000 beds within five years.
Prashanth Rajagopalan, Director of MGM Healthcare, explained, "MGM Healthcare’s strategic acquisition of SevenHills Hospital marks our first foray outside Chennai and is a milestone in our vision of expanding access to quality, affordable, and personalized healthcare." SevenHills Hospital, established in 1988, serves over 100,000 patients annually and is accredited by NABH and NABL.
Manipal Health Enterprises (MHEPL) has entered the Mumbai healthcare market by acquiring Khubchandani Hospital for INR 415 Cr. The acquisition was officially registered on October 7, and stamp duty payments amount to INR 27.3 Cr, as confirmed by official property documents.
The acquisition is part of Manipal's ongoing strategy to expand its footprint in key metro cities. At INR 0.83 Cr per bed, the deal is seen as a competitive valuation, particularly for Mumbai’s high-value real estate market, where hospital acquisitions typically cost more.
For comparison, in a previous deal, Manipal acquired a 67% stake in Medica Superspecialty Hospital in Kolkata for INR 600 Cr, equating to INR 0.5 to 0.6 Cr per bed. However, the acquisition of Khubchandani Hospital marks a different dynamic, given Mumbai’s higher valuation for healthcare real estate.
This latest acquisition follows a series of strategic moves by Manipal to consolidate its position in the competitive Indian healthcare market.
Aster DM Healthcare signed a definitive agreement to merge with Quality Care India Limited (QCIL), a major player in India’s hospital sector. QCIL, backed by Blackstone and TPG, focuses on emerging cities and operates a robust network of hospitals.
Upon completion of the merger, which is pending regulatory and shareholder approvals, the combined entity will be known as Aster DM Quality Care Limited. This merger will bring together four prominent healthcare brands—Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare—creating a network of 38 hospitals and over 10,150 beds across 27 cities in India. This positions the new entity among the top three hospital networks in the country.
Reportedly, Aster DM Healthcare will acquire a 5% stake in QCIL prior to the merger, and the deal is expected to conclude by the third quarter of FY26.
Hyderabad-based Krishna Institute of Medical Sciences (KIMS Hospitals) has acquired Queen's NRI Hospital in Visakhapatnam (Vizag) for INR 75 Cr. This acquisition, which will be completed within a month, marks an important step in KIMS Hospitals’ ongoing expansion strategy.
The Queen's NRI Hospital, which recorded a revenue of approximately INR 63 Cr in the financial year 2022-23, will now become part of the KIMS network. The acquisition includes the purchase of the entire stake in Chalasani Hospitals, the parent company that owns Queen's NRI Hospital.
Founded in 1994 by Dr Ranga Rao Chalasani and Dr. Vijaya Lakshmi Chalasani, Queen’s NRI Hospital has long been dedicated to delivering personalized, patient-centric care. Now, as part of the KIMS group, it will continue its legacy while benefiting from the resources and reach of one of South India's leading healthcare providers.
Global Health, the operator of Medanta Hospital, has secured a 2.2-acre plot in Oshiwara, Mumbai, for INR 125 Cr in an e-auction conducted by the Maharashtra Housing and Area Development Authority (MHADA). The group outbid Jupiter Hospital, which offered INR 76 Cr.
This acquisition paved the way for Medanta to establish a state-of-the-art healthcare facility equipped with advanced medical technologies and services for the residents of Mumbai. MHADA officials noted that the new hospital will contribute to expanding Medanta's reach in the city.
IHH Healthcare, a leading private hospital operator in Asia, has acquired Island Hospital in Penang from Affinity Equity Partners for 3.92 Bn ringgit ($896 million).
This acquisition, expected to be completed by the end of 2024, will add Island Hospital's 600 beds to IHH’s existing Malaysian network, which includes facilities like Pantai Hospitals and Gleneagles Hospitals.
IHH’s Group CEO, Dr Prem Kumar Nair, stated that the acquisition would create significant synergies and enhance the hospital’s presence in Asia. He highlighted that the deal aligns with IHH’s long-term growth strategy.
Narayana Health, led by heart surgeon-turned-billionaire Devi Shetty, is in advanced talks to acquire a controlling stake in Spire Healthcare, the UK’s largest private healthcare provider by revenue.
This acquisition, Narayana’s second major global move after its expansion into the Cayman Islands, comes amid a growing demand for private healthcare in the UK due to NHS backlogs.
Spire Healthcare, listed on the FTSE 250, operates 40 hospitals and more than 50 clinics across the UK. Narayana aims to acquire at least 51% of Spire through an open offer, potentially making it a private entity if it secures 75% of the shares. The deal could position Narayana as a key player in the global healthcare market.
KKR is on the brink of acquiring Healthcare Global Enterprises (HCG), India’s largest specialty cancer care chain, from private equity firm CVC Capital Partners. The deal is expected to conclude in the coming weeks, with both parties aiming to sign binding agreements by early January 2025.
HCG, founded in 2005 in Bengaluru by Dr BS Ajaikumar, operates over 2,200 beds across 19 cities. KKR’s proposed INR 425-450 per share offer surpasses a rival bid from Bain Capital.
After the acquisition, KKR plans to launch an open offer for an additional 26% of HCG. If KKR reaches a 75% shareholding threshold, a potential delisting of the company could follow. KKR’s return to the Indian healthcare market after a two-year hiatus signals a significant investment in the sector.
The pace of transformation in India’s healthcare sector shows no signs of slowing down. As businesses continue to expand into new, underserved markets and embrace cutting-edge technologies, M&As will remain a key strategy for growth and innovation. Companies that can successfully combine affordable, quality care with technological advancements will be well-positioned to attract investor interest.
The ongoing evolution of the sector promises to unlock even more opportunities in 2025, making healthcare an increasingly competitive and dynamic industry in India. M&A activity, driven by these trends, will play a critical role in shaping the future of Indian healthcare.
Disclaimer: This article highlights major mergers and acquisitions in the healthcare sector in 2024. While it covers significant developments, other relevant transactions may not be included. The information presented is based on available sources and is for informational purposes only. We are not responsible for any omissions, inaccuracies, or future changes. All financial figures and details are approximations and subject to updates.
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