HCG partners with Mahatma Gandhi Cancer Hospital and Research Institute

HCG will have an initial 51 per cent stake in MGCHRI, with plans to complete the acquisition of the additional 34 per cent stake over the next 18 months HealthCare Global Enterprises (HCG) has acquired Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag, Andhra Pradesh, for an enterprise value of Rs 4,140 million. HCG will have an initial 51 per cent stake in MGCHRI, with plans to complete the acquisition of the additional 34 per cent stake over the next 18 months. Dr BS Ajaikumar, Executive Chairman, HealthCare Global Enterprises said, "This expansion strengthens HCG's presence in the region, enhancing their capabilities and reinforcing their commitment to providing high-quality treatment and support for cancer patients. HCG aims to augment tech capabilities to further improve the quality of cancer care in the region. He expressed enthusiasm for continuing their mission to expand cancer care services and integrate innovative solutions to ensure exceptional, patient-tailored care."  Raj Gore, CEO HealthCare Global Enterprises  added, "The strategic integration will not only strengthen operational efficiencies but also enable us to offer comprehensive, patient-centered care solutions. Our collective expertise and shared resources will drive innovation and foster new standards of excellence in healthcare delivery. We are excited about the opportunities ahead and remain focused on advancing healthcare outcomes for our patients while creating sustained value for our stakeholders". Dr Murali Krishna Vonna, MD and Chief Surgical Oncologist, Mahatma Gandhi Cancer Hospital & Research Institute said, "This union represents our shared vision to provide the highest quality cancer treatment and care to our patients in Vizag, a city that ranks among the top 10 cities by GDP. By combining our strengths, we are poised to enhance our medical expertise, expand our services, and continue our commitment to patient-centric care. I am excited about the opportunities this partnership brings and jointly remain dedicated to our mission of offering hope and healing to those affected by cancer." The partnership aims to address the significant demand-supply gap in radiation therapy equipment, which has a penetration rate of less than 0.6 per million in Andhra Pradesh and Orissa. Mahatma Gandhi Cancer Hospital & Research Institute, located in a robust primary catchment area, also benefits from substantial secondary demand from neighbouring states. Its clinical standards closely align with HCG's rigorous cancer care protocols, ensuring seamless integration post-acquisition. HCG aims to expand its multi-modality programs and enhance customer engagement strategies through this acquisition, leveraging operational synergies and scale advantages. The integration will utilise established technology platforms for digital marketing initiatives, strengthening EBITDA margin and enhancing EPS growth.