HCG Acquires Mahatma Gandhi Cancer Hospital for INR 414 Cr

The deal begins with 51% ownership, with plans to acquire an additional 34% stake over the next 18 months.

India's leading cancer care provider, Healthcare Global Enterprises (HCG) has acquired a majority, 51% stake in Visakhapatnam's Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI) for INR 414 Cr.

The deal begins with a majority share of 51% ownership, with plans to acquire an additional 34% stake over the next 18 months. Furthermore, the acquisition strengthens HCG's position in the Vizag region and boosts its annual earnings.

Commenting on the acquisition, HCG's CEO Raj Gore said, "We are focused on expanding our reach and taking HCG’s comprehensive & quality cancer care services closer to patients in and around Bengaluru. As a leading healthcare provider dedicated to excellence, we remain committed to investing in new infrastructure, advanced treatments, and cutting-edge technology."

The Financial Graph

MGCHRI's revenue for FY24 was INR 120.2 Cr with an EBITDA of INR 42.2 Cr. HCG stated that the acquisition is expected to increase the company's annual EBITDA by INR 3 per share.

HCG, along with MG Hospital's management, will work on optimizing capacity to add over 25 additional beds to the hospital's existing 196 operational beds.

Private cancer care services in Visakhapatnam are in high demand, growing at over 15% year-on-year.

Established in 1986, MGCHRI is led by onco-surgeon, Dr Murali Krishna Voonna. The hospital features advanced medical infrastructure, including two LINAC machines, one PET CT scanner, a Robotics Surgery System, and a dedicated Bone Marrow Transplant unit.

Additionally, its clinical team comprises 31 doctors, 12 surgical, six radiation, and four medical oncologists.

Strategic Expansion Plans in Bengaluru

HCG, headquartered in Bengaluru, operates 21 comprehensive cancer centers across India and Africa. The company recently announced plans to launch two new cancer care centers in Whitefield and North Bengaluru, set to start operations in early 2025.

These new facilities will provide high-precision diagnosis and personalized treatment plans, among other services, aiming to bring advanced cancer treatment to the city's populous areas. The centers will be HCG's third and fourth facilities in Bengaluru.

Currently, HCG operates 21 comprehensive cancer centers and 24 hospitals across India and Africa, along with seven day-care centers. The acquisition of MGCHRI and the opening of new centers in Bengaluru are part of HCG's strategic expansion plans to enhance its services and reach more patients.

The demand for private cancer care services continues to grow, and HCG's strategic acquisitions and expansions are designed to meet this increasing need.