Manipal Hospitals Buys 87% Stake in Kolkata’s Medica Synergie

With the addition of Medica, Manipal Hospitals will have expanded presence across 14 states via 37 facilities. Its total bed count will increase to over 10,500 beds.

Manipal Hospitals, the second-largest hospital chain in India, has acquired 87% stake in Kolkata-based hospital chain Medica Synergie.

The deal is estimated to be around INR 1400 Cr, TOI said quoting sources.

This move reflects Manipal's strategy to expand its presence in Eastern India and meet the increasing demand for high-quality healthcare services in the region.

The transaction, expected to be finalized shortly after completion of pending customary processes, will integrate Medica Synergie into Manipal's portfolio.

This integration aims to enhance healthcare delivery across Eastern India, including key cities including Kolkata, Siliguri, and Ranchi.

“By leveraging the clinical expertise and infrastructure of Medica Synergie, along with the combined operations of its extensive network, Manipal Hospitals will be well-positioned to meet the increasing demand for high quality tertiary and quaternary healthcare services in Eastern India," Manipal Hospitals said in a statement.

Medica Synergie is a part of the Medica Hospitals group. It has a network providing multi-specialty and super-specialty healthcare facilities in Eastern India.

With the acquisition, Manipal will get 87% stake in Medica previously owned by Temasek. In Manipal, Temasek and its associates have 59% stake.

What Does the Acquisition Mean for Manipal Hospitals?

As per the statement, Manipal Hospitals will rebrand Medica Synergie after the completion of the acquisition. Further, with the addition of Medica, Manipal Hospitals has expanded its presence across 14 states via 37 facilities. Also, Manipal’s total bed count will increase from over 9,500 to more than 10,500 beds.

Commenting on the acquisition, Dilip Jose, MD & CEO of Manipal Hospitals said, “We are delighted to welcome Medica Synergie with its highly talented team of professionals into the Manipal family. With this acquisition Manipal Hospitals builds on its strong presence in Eastern India, enabling us to expand our reach and meet the healthcare needs of this under-served region.”

Manipal Hospitals is one of the top hospitals in India with over 5,600 doctors and an employee strength exceeding 18,600. The acquisition marks another strategic move by Manipal Hospitals to strengthen its position in the Indian healthcare sector.

Hospitals On Expansion Spree

Post Covid-19 pandemic, several private hospitals in India are on an expansion spree. Apollo Hospitals Enterprise Limited remains the largest private hospital in India with over 10,000 beds.

In November last year, it rolled out an INR 3,435 Cr capex plan to add 2,300 beds to its existing capacity in the next three financial years.

In an effort to solidify its position in eastern India, Manipal Hospitals too last year acquired an 84% stake in Emami Group's AMRI Hospitals Ltd.

However, it is yet to be seen whether the recent Manipal-Medica merger will give it an edge over Market leader Apollo in terms of bed capacity.

Top Hospitals Turning East

Not only Manipal, but top hospitals in India are turning East to expand their reach. With Medica acquisition, Manipal Group will have 1,600 beds in Kolkata, up from the current 1,500 count.

Narayana Hospitals currently has around 1,400 beds at its four units in Kolkata, Howrah and Barasat, making it second largest in the region. Apollo Multispecialty Hospital has 750 beds.