Japanese Majors Toyota Tsusho & SECOM to Build Health Facility in India with INR 1,000 Cr Investment

With the expansion, Sakra World Hospital anticipates a significant revenue surge of INR 500 Cr by the end of 2024.

Japanese conglomerate Toyota Tsusho Corporation and SECOM Medical System are going to invest INR 1,000 Cr to set up a second multi-super specialty healthcare facility under their Sakra World Hospital operations.

Established in 2014, Sakra World Hospital (a unit of Takshasila Hospitals Operating) is a collaborative venture between Toyota Tsusho and Secom Hospitals. Initially launched with 350 beds, it has since become a prominent healthcare facility in Bengaluru.

The partners, renowned for their successful establishment of Sakra World Hospital in Bengaluru, are now poised to extend their footprint with a new 500-bed unit in Banaswadi, Bengaluru North.

Scheduled for completion by the end of 2026, this facility will encompass an expansive built-up area spanning six lakh sq ft. The announcement comes as part of Sakra World Hospital's broader strategy to meet the growing demand for quality healthcare services in India.

Sharing his thoughts, Tatsuro Fuse, executive director, SECOM & chairman, SECOM Medical System, Japan, said, "We are proud to combine the expertise of SECOM Medical System and Toyota Tsusho to deliver world-class healthcare solutions in Bengaluru. The new facility is an extension of our firm commitment towards fulfilling the healthcare needs of the local and international communities."

The forthcoming facility promises a comprehensive range of specialized treatment procedures across various super-specialties. From advanced oncology treatments to robotic surgeries and innovative rehabilitation programs, the hospital aims to provide cutting-edge healthcare solutions to its patients.

Revenue Projections & Expansion Strategy

Sakra World Hospital anticipates a significant revenue surge of INR 500 Cr by the end of 2024, showcasing the immense potential of the healthcare market in India.

Moreover, the hospital has outlined an ambitious expansion strategy, including plans to establish new hospitals in prime locations such as Sarjapur Road or Old Madras Road in Bengaluru over the next decade.

Additionally, venturing into Tier-II cities and developing a 50-bed boutique hospital in HSR Layout is also on the agenda.

Underscoring its commitment to excellence, Sakra World Hospital also plans to enrich the quality of life through research and education initiatives.

Regarding this, Lovekesh Phasu, group chief operating officer, Sakra World Hospital, said, "Medical research and education are integral to our growth journey. We believe in fostering a culture of continual learning and innovation."

Future Prospects

While the plans for the third facility are still in the negotiation phase, Sakra World Hospital is poised to expand its operations further with the addition of 1,000 beds in the second phase of its expansion.

The prospective investment for the third unit ranges between INR 700 Cr and INR 800 Cr, indicating the scale of commitment towards enhancing healthcare infrastructure in India.

The collaborative efforts of Toyota Tsusho Corporation and SECOM Medical System promise to be a significant step forward in India's healthcare landscape.

In a similar hospital expansion development, in January, the Asian Development Bank (ADB) signed an agreement to provide INR 150 Cr (approximately $18.4 million) in debt financing for Cygnus Medicare. The funding aims to advance affordable and high-quality healthcare in northern India, focusing on expanding access in Tier-II and Tier-III cities.