After making a number of acquisitions recently, India's top two hospital operators, Apollo Hospitals and Manipal Health Enterprises, are preparing to make significant investments in building new facilities in order to capitalize on the growing trend of Indians choosing the organized sector for their healthcare needs.
With 33 hospitals spread across 17 cities and 9,500 beds, Manipal Health is the second largest network. In the upcoming two quarters, the company intends to invest over Rs 1,500 crore to add 1,400 beds. The industry leader Apollo plans to add 2,400 beds between fiscal 2025 and 2027. Apollo now operates 10,000 beds.
By mid-2024, Manipal plans to open three hospitals in Bengaluru with a combined bed capacity of 1,000 and one hospital in Raipur with 400 beds, according to a top executive, who spoke with ET.
"The significant investment is already underway in four greenfield quaternary-care hospitals. Adding about 1,400 beds in Bangalore and Raipur is a testimony to our belief that the need for high-quality healthcare will continue to grow," Dilip Jose, managing director and chief executive of Manipal Hospitals told Economic Times.
Through its most recent acquisition of AMRI Hospitals Ltd. in Kolkata, Manipal added over 1,200 hospital beds in September, making it the largest hospital chain in Eastern India.
Through buyouts, Manipal Health has been able to increase its national footprint. It paid Rs 2,100 crore for the Indian assets of Columbia Asia Hospitals in 2020, and in June 2021 it paid roughly Rs 350 crore to Multiple Private Equity for Vikram Hospitals, which is located in Bengaluru.
Approximately 59 per cent of Manipal Health is owned by the Singaporean government-owned fund Temasek Holdings. Thirty percent is owned by promoter Ranjan Pai and his family, with the remaining eleven percent held by TPG Growth.
Apollo Hospitals intends to commence a greenfield growth initiative in the upcoming fiscal year.
