Manipal Hospitals Acquires Medica Synergie, Becomes Largest Healthcare Group in India

Manipal Hospitals, a leading healthcare provider in India, announced on Monday the acquisition of an 87% stake in Kolkata-based hospital chain Medica Synergie. Industry sources estimate the deal value to be around ₹1,400 crore.

This strategic move significantly expands Manipal Hospitals’ bed capacity. With the addition of Medica Synergie’s facilities, the Karnataka-based chain will increase its bed count from over 9,500 to more than 10,500, solidifying its position as the largest healthcare group in the country. Previously, Apollo Hospitals held the top spot with approximately 10,103 operational beds as of March 31, 2024.

Expansion Strategy Aligned with Eastern India Focus

Dilip Jose, MD & CEO of Manipal Hospitals, highlighted the acquisition’s alignment with the company’s expansion strategy.”This securing fortifies our presence in Eastern India, especially in key urban areas like Kolkata, Siliguri, and Ranchi,” he expressed.”By integrating Medica Synergie into our network and subsequently rebranding it, we aim to broaden our reach and address the healthcare needs of this underserved region.”

Consolidation Expected After Standard Processes

Backed by Singaporean investment firm Temasek, Manipal Hospitals anticipates completing the transaction upon finalizing standard formalities. This acquisition will add Medica Synergie’s network of hospitals to Manipal Hospitals’ existing portfolio, bringing the total to 37 facilities across 19 cities in 14 Indian states.

Following a Trend of Hospital Chain Expansion

This deal marks another significant investment by a hospital chain seeking to bolster its national presence. In 2023, Manipal Hospitals undertook a similar acquisition, securing an 84% stake in Kolkata’s AMRI Hospitals Ltd. from the Emami Group.

Manipal Hospitals isn’t alone in its expansion endeavors. Leading healthcare providers such as Aster DM, Max Hospitals, and Paras Health have recently announced similar plans for capacity growth.

Growth in the Private Hospital Sector

Driven by rising incomes and increasing insurance penetration in India, private hospital chains are witnessing a surge in investment. Additionally, the Bharatiya Janata Party’s recent manifesto announcement regarding free health insurance for senior citizens above 70 years old is expected to further propel demand in the sector.

Enhanced Service Offerings in Eastern India

In a statement, Manipal Hospitals emphasized the combined strengths of the acquisition. “By leveraging Medica Synergie’s clinical expertise and infrastructure, along with the operational efficiencies of our extensive network, Manipal Hospitals will be ideally positioned to meet the growing demand for high-quality tertiary and quaternary healthcare services in Eastern India,” the statement declared.

The transaction involved advisors such as Allegro Capital Advisors, Khaitan and Co., and KPMG for Manipal Health Enterprise Pvt. Ltd.