HCG Plans to Acquire Hospitals in Tier-2 and Tier-3 Indian Cities

The company will add 125 beds at Ahmedabad and Bengaluru as part of its ongoing greenfield expansion

HealthCare Global Enterprises (HCG), a prominent cancer care provider, is planning for growth and expansion in India through a combination of organic and inorganic opportunities over the next 3-5 years. The company is conducting extensive market research to gain insights into the Indian cancer market, which is expected to witness significant growth due to increasing cancer incidences, disease relapse, growing affordability, and inflation. Estimates suggest that the oncology market in India will expand by 11-12% to reach Rs 26,300 crore by 2024.

Raj Gore, CEO of HealthCare Global Enterprises, expressed the company's focus on strategic expansion into key locations and the evaluation of value-accretive inorganic opportunities in cancer care. The company intends to augment its bed capacity both organically and through acquisitions, while also investing in advanced technologies. Additionally, HCG is exploring the possibility of acquiring hospitals and partnering with smaller healthcare facilities to provide tertiary and quaternary cancer care services.

In recent years, HealthCare Global Enterprises has been steadily expanding its presence. Between 2016 and 2020, the company established ten new hospitals and has been investing in technology and innovation to enhance its services. Currently, it operates 22 comprehensive cancer centres in India and has a cancer care centre in Nairobi, Kenya. The company plans to add six linear accelerators to its inventory and increase its bed capacity through greenfield expansion in Ahmedabad and Bengaluru within the next 1-2 years.

Gore highlighted the expected growth in the Maharashtra region, primarily driven by newer centres in Mumbai, as well as in the East, led by Kolkata. Cancer incidence in India is growing at an annualised rate of 6.8%, surpassing rates in countries like China, Brazil, and Indonesia. It is estimated that the actual incidence of cancer cases in India is 1.5-3 times higher than reported, with approximately 1.9-2 million cases reported each year.

HCG aims to improve profitability by increasing footfall, optimising asset utilisation, and widening profit margins. With the growing demand for cancer treatment and care in India, HCG is committed to investing in the expansion of its cancer care services and infrastructure. The company aims to develop customised products and services tailored to meet the unique needs of the Indian market by identifying prevalent types of cancer, existing treatments, and innovative therapies.

Overall, HealthCare Global Enterprises is poised for growth and expansion in the Indian cancer care sector. With its strategic approach, investment in advanced technologies, and focus on meeting the demands of the Indian market, the company aims to provide high-quality cancer care services and contribute to improving medical infrastructure for the benefit of patients across the country.