INDIA – Indian medical care giant Kauvery Hospitals has signed a definitive agreement to take over day-to-day business operations of Fortis Hospital, Vadapalani from Fortis Healthcare in a deal worth Rs. 152 crores (US$18.5 million).

In an official note, Dr. Chandrakumar Sundararaju, Founder and Executive Chairman of Kauvery Group of Hospitals, said: “Kauvery is currently in the midst of a fast-paced expansion programme.”

Kauvery Hospitals is expected to increase the number of beds at Fortis Hospital, Vadapalani from 110 beds to over 200 beds.

The Fortis Health Care facility in Vadapalani of Chennai houses various operation theatres offering a wide spectrum of treatments to patients in and around the city.

Located on the arterial Arcot Road, this multispeciality facility is Fortis Healthcare Group’s second hospital in Chennai city.

Upon completion of the acquisition, Fortis Hospital, Vadapalani will join Kauvery’s healthcare business allowing the latter to strengthen its presence in the southern part of India.

The all-cash deal is expected to be finalized by the end of July 2023 as part of Kauvery’s focused expansion drive.

“With this latest acquisition, Kauvery Hospitals shall be the second largest hospital chain in Chennai as it continues to focus on strengthening its leadership position in existing markets,” said Dr. S. Chandrakumar.

The acquisition of Fortis Hospital, Vadapalani will empower the group to expedite its Chennai presence by solidifying its ground presence on the Alwarpet and Radial Road.

Consequently, Kauvery Hospitals is on track to boost its bed capacity in Chennai, Bengaluru, and Tamil Nadu clusters by 2025.

The group also plans to establish two new hospitals in Tiruchy and Bengaluru respectively in the current financial year

“Kauvery plans to reach 1,000 beds each by 2025 in Chennai, Bengaluru, and TN clusters. This ramp-up would mean that the network shall comprise 15 hospitals spread across seven cities in the south, with 3,000+ beds, and shall likely go for an IPO, in the next 36 months,” said Dr. Chandrakumar.

The medical care giant continues its expansion spree after closing a US$70 million investment funding round earlier this year.

Kauvery Hospitals snapped up US$70 million in an investment funding round from a private equity fund managed by IIFL AMC to facilitate its business expansion in India.

Through its fast-paced expansion programme, Kauvery Hospitals promises to meet the growing demand for high-quality healthcare services across the country.

The latest US$18.5 million acquisition deal aligns with Kauvery’s market positioning strategy for the Indian market.

What’s more, Indian hospital chain Fortis Healthcare has agreed to sell its hospital business operations at Vadapalani in Chennai to diversify its offerings and assets.

Commenting on this buyout deal, Dr. Ashustosh Raghuvanshi, Managing Director & Chief Executive Officer of Fortis Healthcare said: “The divestment of Arcot Road hospital business operations is in line with our stated intent of optimizing our hospital assets keeping in mind our key markets and regions.”

Fortis Healthcare will pursue further growth in India in line with the company’s ongoing portfolio rationalization strategy to deepen its presence in select geographic clusters.

“This divestment strategy underpins our focus on improving our overall profitability and margins in the segment, allowing us to re-allocate capital in our key clusters,” underscored Dr. Ashustosh Raghuvanshi.

For all the latest healthcare industry news from Africa and the World, subscribe to our NEWSLETTER, and YouTube Channel, follow us on Twitter and LinkedIn, and like us on Facebook.