Two deals in less than two months! On 2 June, Manipal Hospitals announced a definitive agreement with Multiples Private Equity Fund for 100 per cent acquisition of the Bengaluru-based, multi-specialty Vikram Hospital, which makes it Manipal’s 10th hospital in the city. This announcement comes close on the heels of its acquisition of the India operations of Columbia Asia Hospitals in April 2021.
While the acquisition of the India operations of Columbia Asia provides Manipal Hospitals with the opportunity to scale up its geographical footprint, including entry into key locations like Pune and Kolkata, it also enhances its presence in Bengaluru, as also the NCR. “The deal was funded by internal accruals and an infusion of fresh equity by the shareholders,” says Dilip Jose, MD & CEO, Manipal Health Enterprises Pvt Ltd.
“With the growth in both scale and locations, the network is now able to reach far more patients to meet their healthcare needs, at the same time offering easier access. Also, the combined clinical teams can offer a much wider range of services across the entire network, including the introduction of new therapies. We are also able to introduce new teaching and training programmes that would benefit many aspiring specialists.” Jose feels the integration of the networks into one entity would also pave the way for operating synergies, such as procurement, customer service & outreach and digital initiatives.
“This second deal was concluded through internal accruals; we did not have to make any additional borrowings,” adds Jose, while not commenting on the size of it. “Vikram Hospital is a reputed facility, offering a wide array of clinical services, and it fitted well with our strategy for Bengaluru. With the addition of this unit, Manipal Hospitals now has 10 hospitals under its umbrella, with over 1,800 beds in Bengaluru, providing unparalleled access and comprehensive care to meet the needs of this growing city.”
Top ranked healthcare provider
Set up in 2009, Vikram Hospital is a 200-bed, high-end tertiary care facility, located in the central business district. It is best known for its clinical expertise in the fields of cardiac and neuro sciences. “Manipal Hospitals has been the top ranked healthcare provider in Bengaluru for over two decades,” affirms Ranjan Pai, chairman, Manipal Education & Medical Group (MEMG). “And, this addition is a reiteration of our commitment to meet the healthcare needs of the city and the region. There are two greenfield hospitals that are under construction and once they are complete (say, in the next 24 months), our network of 12 hospitals with over 2,300 beds will be best placed to provide ease of access and comprehensive care to everyone across this fast-growing city.”
Despite the presence of many large hospitals and nursing homes of various sizes and forms in Bengaluru, there are still under-served areas in the city. “We believe that North Bengaluru, towards the airport, is one such location, and so, we are developing a greenfield hospital of 250 beds capacity there, which would offer the entire range of tertiary and quaternary care services for that area,” adds Jose.
“Similarly, we have identified Kanakapura Road in the southern part of the city as another location that would benefit from access to a high-quality hospital and are in the process of setting up a facility there.” He hopes that both these units would be ready in the next 24 months and would together bring in an additional capacity of 500 beds to Manipal’s network in Bengaluru. Considering that the city is the destination for patients from many parts of Karnataka, as well as other states, the enhanced capacity will go a long way in meeting this growing demand.
“We salute the doctors, the outstanding management team and the staff of Vikram Hospital, who built an iconic hospital in the city of Bengaluru,” says Renuka Ramnath, founder, MD & CEO, Multiples, a private equity firm, while talking about the Vikram transaction. “We are pleased that we are handing over this marquee asset to a worthy group. With this larger canvas, the doctors will have the ability to have a deeper impact on the healthcare needs of the city.”
With this latest addition, Manipal Hospitals now has 27 hospitals spread across 14 cities, more than 7,300 beds and a talented pool of 4,000 doctors and over 11,000 employees. The hospital group is also scouting to expand its footprint in eastern India and to further enhance its presence in the existing geographies.
As a pioneer in healthcare, Manipal Hospitals is among the top healthcare providers in India serving over four million patients annually. Its focus is to develop an affordable, high quality healthcare framework through its multi-specialty and tertiary care delivery spectrum and further extend this to out-of-hospital care.