Temasek-backed hospital Manipal Health looking to acquire smaller India hospital chain to become India’s leading healthcare provider

SINGAPORE: Manipal Health Enterprises, backed by Temasek Holdings, is looking at its fourth buyout since 2020.

Manipal Health is looking to acquire a smaller India hospital chain to become India’s leading healthcare provider, potentially overtaking Apollo Hospitals Enterprise.

The Business Times reported that the Bengaluru-based firm, with Temasek holding a majority stake of 51%, is in talks to acquire a hospital chain in Eastern India, according to Manipal’s CEO, Dilip Jose.

While specifics of the deal remain undisclosed, clarity is expected within six weeks.

A report from MoneyControl, suggests that Manipal might be closing in on Kolkata-based Medica Synergie, a move that could add 1,200 beds to its network.

Mr Jose highlighted the under-served nature of Eastern India, indicating a strategic push to enhance Manipal’s presence in the region.

If the deal materialises, Manipal’s current 9,500-bed capacity would surpass Apollo’s 10,103 beds, reflecting the intense competition within India’s healthcare landscape.

This competition is set to intensify as India’s healthcare market and is projected to nearly double to US$320 billion (S$426.63 billion) by 2028, according to Bain & Co.

Despite this growth, India’s healthcare infrastructure remains inadequate, with only 16 beds and 7.3 physicians per 10,000 people as of 2021, as per the World Health Organization.

While Manipal pursues expansion, Apollo Hospitals also continues to grow, with plans to add over 2,000 beds in the next four years at a cost of 30 billion rupees (S$483 million).

Manipal, on the other hand, is actively scouting opportunities not only in smaller Indian towns but also in Hyderabad and Mumbai.

Mr Jose also said that there’s no immediate plan for an initial public offering (IPO) for fundraising. Additionally, Manipal aims to add another 1,100 beds across four new hospitals in Bengaluru and Raipur by 2026.

Since 2020, Manipal has been on an acquisition spree, acquiring three hospital chains including 11 hospitals from Malaysia’s Columbia Asia Hospitals Group, a tertiary care hospital in Bengaluru, and AMRI Hospitals last September. These acquisitions have added nearly 2,750 beds to Manipal’s network.

The backing of Temasek has been crucial for Manipal’s expansion, with Temasek increasing its stake in the company last April. Recently, Temasek sold a portion of its stake to Novo Holdings, Mubadala Investment Company, and others. /TISG

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