Manipal Hospitals Acquires Fortis Hospital At ₹415 Crores, Expands Reach In Mumbai’s Andheri.

The Indian healthcare sector is undergoing an unprecedented growth across its various segments and Manipal Hospitals in Bengaluru figures prominently. Madison is a well-known healthcare giant that recently hit the headlines by buying a prime hospital property in Andheri, Mumbai for ₹415 crore. This latest buy is part of the hospital chain's much grandeur expansion ambitions and indicates its presence more firmly in one of India's busiest, competitive & fastest ground markets.

According to documents sourced from Propstack, the transaction was formalized on October 7, 2023. With both buyer and seller equally ecstatic over this deed transfer, the possession of Rosewood Ambience was officially passed on to Manipal Health Enterprises Private Limited from Khubchandani Properties and Investment Private Limited.

In this Blog we will be discussing more on acquisition, how big is it as a deal and what are the future implications in healthcare space in Mumbai & beyond.

A Pharma and Company milestone acquisition Analysis: 

The acquisition of Andheri-based Nanavati Hospital brings Manipal Hospitals into Mumbai, adding further momentum to its overarching healthcare footprint. It has a total land area of 10,590 sq. m., with the hospital structure occupying approximately 20,851.65 sq.cm. Located on a land area of ​​about 2.61 acres, the property comprises facilities such as basement parking (with 180 enclosed car parks and 204 mechanical stack park stations), lower ground floor; Ground level down to third floors

The hospital is strategically located in the heart of one of Mumbai's most prominent suburban areas, well-placed to cater not only a large pool patient population but also effectively address the evolving healthcare needs of an ever-increasing city populace.

Manipal Hospitals, a Healthcare Leader with Tamesek Holdings in the Back

Manipal Hospitals, a part of the Manipal Education and Medical Group (MEMG), have held a dominant position in India's healthcare industry since 1945. A leading healthcare provider, it has various multispecialty hospitals in the country through which millions of patients get quality medical care. Manipal Hospitals, backed by Singapore's sovereign wealth fund Tamesek Holdings (that acquired a majority stake in the hospital chain for $2 billion in 2022) has been on an acquisition spree.

The Andheri property is a follow-up to this expansion plan by acquiring the hospital. Said companies, Mumbai the leading market for healthcare providers will be approached differently as compared to other cities in India and setting up a new facility with greenfield projects particularly plus once more complicated due space constraints open land is getting very expensive so the development happens further away or real estate costs looming upfront in case of metropolis cities. Feb 2023: Dilip Jose, Managing Director and CEO of Manipal Hospitals : Mumbai was an interesting city for us… but to do greenfield projects in the City is extremely difficult. Another pathway to entry is through the acquisition of pre-existing healthcare infrastructure.

Strategic Location :Why Andheri?

Further to the above, Mumbai's crowded Andheri suburb stands as an essential node for commerce residing and healthcare Its close proximity to the Mumbai airport and well-connected road/rail network makes Andheri one of the most preferable places today for hospitals, clinics and healthcare services in general.

For Manipal Hospitals, acquiring a hospital property in Andheri fits perfectly into long-term plans – and provides significant benefits. The high population density of the area and constantly growing demand for quality healthcare make this field quite attractive. Buying the hospital helps in expanding into the important urban center, which is I&MRL’s ultimate goal. This is, however, not the only expansion avenue for Manipal. In September 2023, the hospital chain acquired 84% control over AMRI Hospitals Ltd., whose 15% of shares, pre-acquisition, belonged to the Emami Group. The partnership, like buying a hospital in Andheri, was aimed at extending the reach in major regional markets. Whatever the case, demand has created a valuable commercial environment, and it is up to the business to address every opportunity while overcoming the challenges. First and foremost, growth and demand cannot overcome the issue of high costs. Urban spaces such as Mumbai are already expensive in this aspect. New constructions have issues with licensing and longer throughput times. Thus, buying Notion Hospitals is an excellent opportunity to take advantage of the for “second best,” quickest, and yet still lucrative option.

In addition, the healthcare industry is plagued with a problem in supply side -be it less skilled man power or specialization problems. That said, in the process outsized global players like Tamesek backing Manipal Hospitals are better placed to negotiate various challenges and push on with their growth pedition.

Alternatively, there is an incredibly high market for growth in the healthcare industry. Higher disposable incomes, preference for private healthcare and an expanding insurance market have all helped the likes of Manipal expand their operations. In addition, the increasing necessity for sophisticated healthcare services and superior class health infrastructure will propel growth in premium healthcare facilities which is anticipated to be a core offering from Manipal Hospitals in Mumbai as well as other urban centres.

Looking forward: what to anticipate for healthcare in Mumbai

By the acquisition of Andheri hospital property, Manipal Hospitals is now set to play a major role in transforming Mumbai healthcare landscape. The deal will not only further the company's footprint in one of India's biggest metros, but also put more weight behind what is shaping to be a broader trend for consolidation within healthcare. This trend could be accelerated as real estate prices continue to increase, and space decreases in ever more clogged urban centers.

It is also helped by the fact that with the rising urban population in cities such as Mumbai, there would be no dearth of patients (as result of increasing need for quality healthcare services). With the funds from this round, and as Manipal Hospitals invests further in infrastructure while enhancing service offerings, Mumbai will not only be able to avail top-notch medical care but also stay true to its well contained health ecosystem.

Conclusion

Not to be left behind, the ealth-care provider Manipal Hospitals has acquired a hospital in Mumbai's Andheri for ₹ 415 crore which clocks another milestone amidst every other effort by this operator focuses on growth and expansion. The investment gives a fillip to Tamesek Holdings-backed Manipal Hospitals as it gears up its expansion in India’s fledgling healthcare market, with Mumbai one of the key urban centres the hospital is focusing on. And this latest acquisition, together with its continued attempts to expand by forming partnerships and making further investments, speaks to the increasing need for healthcare services in India as well as a greater role that private players like Manipal Hospitals will seek out in order to meet such demand.

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