Max Healthcare buys BK Modi’s Saket City Hospital2 min read . Updated: 29 Oct 2015, 12:51 AM IST
Saket City Hospital will be re-branded as Max Smart Super Speciality Hospital, said Max Healthcare
Mumbai: Max Healthcare Institute Ltd, an equal joint venture between Max India and South Africa-based Life Healthcare, will acquire a 51% stake in Saket City Hospital Pvt. Ltd from Smart Health City Pte Ltd, the Singapore-based BK Modi Group company which manages and operates the Delhi-based hospital.
The value of the transaction was not disclosed.
Saket City Hospital will be rebranded as Max Smart Super Speciality Hospital, Max Healthcare said.
With 13 hospitals in North India, Max Healthcare is the largest hospital chain in Delhi. Out of 12 hospitals, 10 are located in and around Delhi and the others in Mohali, Bathinda and Dehradun.
On 9 October, Mint had reported about the discussion of Max Healthcare with BK Modi Group to acquire Saket City Hospital.
Located in south Delhi, Saket City Hospital, or SCH, which started operations in 2013, has 230 beds and is expanding to 300 beds. Max Healthcare plans to expand this facility by 900 additional beds, expanding the hospital’s capacity to 1,200 beds.
“The partnership between Smart Health City and Max Healthcare will be transformational for healthcare delivery in North India. Max’s reputation as a premier healthcare provider and the expertise of their international JV partner, Life Healthcare, South Africa, will act as a catalyst for Smart Health City’s aspirations of creating a world class healthcare destination," said B.K. Modi, founder and chairman, Smart Global Group.
“We believe that we will be able to integrate SCH with our hospital network quickly to optimize clinical and service standards, realize cost efficiency and attract more top clinicians to an already respectable talent pool," said Rajit Mehta, managing director and chief executive, Max Healthcare.
For 2013-14, Saket City Hospitals recorded a loss of ₹ 14 crore on a revenue of ₹ 68 crore. According to the company’s balance sheet for that fiscal year, it has total assets worth ₹ 243.7 crore and long-term borrowings of ₹ 204.8 crore.
A handful of large hospital chains are aggressively expanding into different parts of the country.
In June, Chennai-based Apollo Hospitals Enterprise Ltd acquired a 51% stake in Guwahati-based 220-bed Assam Hospitals Ltd for ₹ 57.25 crore.
Last month, Mint reported plans of private equity investors Ascent Capital Pvt. Ltd and OrbiMed Advisors LLC to sell their stake in Kerala Institute of Medical Sciences (KIMS), a hospital chain.
According to a 2014 report by professional services firm PricewaterhouseCoopers Pvt. Ltd, India’s healthcare infrastructure needs an additional 650,000 beds that will translate into capital investment of ₹ 1.65 trillion by 2017.