Global healthcare giants compete for premier Indian asset

In a landmark move, major global investors are vying to acquire Pune-based Sahyadri Hospitals. The 1,200-bed multi-speciality hospital chain, currently owned by the Ontario Teachers' Pension Plan Board (OTPP), has attracted interest from industry titans including Temasek-backed Manipal Hospitals, Malaysia's IHH Healthcare, Swedish private equity firm EQT, and US-based investment giant KKR.

Sahyadri Hospitals is Maharashtra's largest private hospital chain, boasting 1,200 beds across Pune, Ahmednagar, and Nasik. Established in 1994, the group has expanded to 11 hospitals, more than 50 lab collection centres, over 2,000 clinicians, and a staff exceeding 4,000. Its comprehensive services and strategic locations make it a prime target for healthcare conglomerates aiming to strengthen their presence in Western India.

Manipal Hospitals: Supported by Singapore's sovereign wealth fund Temasek, Manipal Hospitals has been on an aggressive expansion trajectory. Notable acquisitions include Vikram Hospitals and Columbia Asia's Indian operations. The potential acquisition of Sahyadri would further solidify its footprint in the region. 

IHH Healthcare: As one of Asia's largest private healthcare groups, IHH is keen on bolstering its Indian operations. Group CEO Prem Kumar Nair emphasized the firm's intent to grow in India, hinting at acquisitions that could add significant capacity to their portfolio. 

EQT: The Swedish private equity powerhouse has invested over $6 billion in India over the past 21 months. EQT's interest in Sahyadri aligns with its strategy to replicate successes achieved in other sectors, such as IT services, within India's burgeoning healthcare industry. 

KKR: Demonstrating a robust commitment to India's healthcare sector, KKR recently acquired a controlling stake in HealthCare Global Enterprises Ltd. and Baby Memorial Hospitals. Securing Sahyadri would further expand its healthcare portfolio in the country.

While formal bids are yet to be submitted, the forthcoming weeks are expected to witness intensified competition among these healthcare giants. The acquisition of Sahyadri Hospitals not only offers immediate scale but also provides a strategic platform for further expansion in India's rapidly growing healthcare market.

As the bidding war unfolds, stakeholders and industry observers alike are keenly monitoring developments, anticipating a transaction that could set new benchmarks in India's healthcare sector. Stay tuned as the race for Sahyadri Hospitals unfolds, promising to be one of the most talked-about deals of the year.

Source: Adapted from Moneycontrol's article, "Race for Sahyadri Hospitals: Temasek-led Manipal Hospitals, IHH, EQT & KKR seen as early contenders."