Manipal Health Acquires Sahyadri Hospitals for 6,400 Crore, Expanding Western India Presence

Manipal Health Enterprises has purchased the Sahyadri Group, which has a chain of hospitals in Pune and the entire western Maharashtra, for a whopping 6,400 crore. By acquiring Sahyadri Hospitals, Manipal Health has strengthened its foothold in western India.

The chain of Sahyadri Hospitals was previously owned by the Ontario Teachers' Pension Plan company from Canada. This Canadian company acquired Sahyadri Hospitals from Everstone in 2022 for 2,500 crore rupees. However, now Manipal has acquired control of Sahyadri Hospitals by paying double the price. Sahyadri is considered one of the largest private hospital chains in Maharashtra. In this deal, Manipal has surpassed companies like Fortis, Aster DM Healthcare, and Sweden's private equity firm EQT. This has proven to be a good deal for the Ontario Teachers' Pension Plan (OTPP), as they earned 2.6 times the money. This is considered an important milestone in the Indian healthcare sector.

Manipal Health Enterprises has been expanding significantly in recent years. In 2023, it acquired an 84% stake in Kolkata's AMRI Hospital for 2,400 crore. Manipal Health Enterprises is supported by major companies like Singapore's Ramtek and America's TPG Capital. Sahyadri Hospitals was established in 2004. Currently, the Sahyadri Group has eleven hospitals in Pune, Nashik, Ahilyanagar, and Karad. These hospitals have thirteen hundred beds, two and a half thousand healthcare workers, and three and a half thousand support staff. This deal will increase Manipal's total number of beds to 12,000, making it one of the largest hospital networks in India. However, since Sahyadri Hospitals are registered under charitable organizations, certain plans had to be implemented initially. But with privatization, there is a possibility that healthcare services may become expensive for ordinary citizens.