Manipal buys Sahyadri from OTPP; hospital count rises to 49 across India

Business Standard

2 days ago

Bengaluru-headquartered Manipal Hospitals, India's second-largest hospital chain, has acquired Sahyadri Hospitals from Ontario Teachers' Pension Plan (Ontario Teachers'), a global investor with net assets of $194 billion. The acquisition will take Manipal's total bed count to about 12,000. While the deal size was not disclosed, sources close to the development pegged it at around Rs 5,800 crore.
It is estimated that OTPP made 2.5-times returns on its investment in Sahyadri. It had acquired Sahyadri from Everstone Capital in August 2022 at a valuation of Rs 2,500 crore. Rahul Mukim, Managing Director, Private Capital, Ontario Teachers', said: 'Our partnership with Sahyadri over the past three years has been focused on unlocking long-term value — investing behind key specialties and medical technology, expanding reach across the state and building institutional processes to strengthen the platform. I would like to thank Abrarali Dalal, the management team and the clinicians and doctors at Sahyadri for their partnership and wish them every success in their next chapter with Manipal.'
The acquisition of Pune-based Sahyadri Hospitals will add 11 hospitals to Manipal's network across Pune, Nashik, Ahilya Nagar and Karad, increasing Manipal's total number of hospitals to 49. The deal will further strengthen Manipal's position in western India.
IPO-bound Manipal Hospitals is gradually expanding its network. The company has previously acquired Medica Synergy in Kolkata, Columbia Asia's Indian hospitals, AMRI Hospitals in Kolkata and Vikram Hospital in Bengaluru to increase its bed count.
In June, KKR invested about $600 million in debt to support Manipal Group's strategic expansion and growth plans. Manipal Education and Medical Group (MEMG) Chairman Ranjan Pai said the acquisition would strengthen Manipal's presence in western India.
The hospital chain outbid peers such as Fortis Healthcare, Aster DM Healthcare and other private equity firms to win the race for Sahyadri Hospitals.
Dilip Jose, Managing Director and Chief Executive Officer, Manipal Health Enterprises, said: 'At Manipal Hospitals, we are focussed on maintaining a patient-centric ecosystem rooted in clinical excellence and transparency, serving a multitude of patients from all over the country, and beyond. We are delighted to welcome Sahyadri Hospitals into the Manipal family, with its top-rated multi-specialty facilities and world-class doctors. With the strong partnership of our valued stakeholders like Temasek and our other investors, we are excited to grow our operations.'
Manipal Hospitals was supported by a team of advisers including Allegro Capital Advisors and Barclays (financial), Cyril Amarchand Mangaldas (legal), Alvarez & Marsal (accounting and commercial), and Deloitte (tax).
Manipal Hospitals serves over 7 million patients annually. The company's integrated network has a pan-India footprint of 38 hospitals across 19 cities with more than 10,500 beds.
Sahyadri Hospitals, a healthcare network in Maharashtra, comprises 11 hospitals with a total capacity of over 1,400 beds. Abrarali Dalal, Managing Director and Chief Executive Officer of Sahyadri Hospitals, said: 'When Ontario Teachers' invested, our intention was to create a formidable regional player with the infrastructure, medical equipment and clinical excellence to enable high-quality medical care in cities across the region. Backed by strong shareholder support, we've been able to invest over Rs 900 crore since 2022, leveraging our combined expertise to drive the transformation of Sahyadri. We've enjoyed a great partnership with the Ontario Teachers' team and are optimistic about the platform's continued positive impact on healthcare delivery.'
Deepak Dara, Senior Managing Director and Head of India, Ontario Teachers', said healthcare is a key investment theme for them globally and in India.