Manipal Hospitals Takes Over AMRI-Bhubaneswar

The integration includes the introduction of advanced medical technologies and specialized treatment options, upgrading the facility from a tertiary to a quaternary care hospital.

Healthcare giant Manipal Hospitals has successfully taken over AMRI Hospitals which it acquired in September last year.

Recently, Manipal announced the brand integration of a 400-bed AMRI unit in Bhubaneswar. This integration seeks to enhance healthcare delivery across East India.

Reportedly, the service standards at these facilities will be aligned with Manipal Hospitals’ benchmarks.

The integration includes the introduction of advanced medical technologies and specialized treatment options, upgrading the facility from a tertiary to a quaternary care hospital.

Enhancements also feature comprehensive cancer care services, a fully operational liver transplant clinic, and an advanced second catheterization laboratory, all of which were previously unavailable at the hospital.

On the development, Partha Das, chief people officer, Manipal Hospitals, said, “By seamlessly blending the expertise of Manipal Hospitals with the rich legacy of AMRI, we are not only committed to providing exceptional care to our patients but also fostering a culture of collaboration and excellence among our employees. We are proud to extend our commitment to quality care and employee well-being throughout the region.’’

Recap of the Manipal-AMRI Acquisition Deal

Manipal Hospitals acquired an 84% stake in four hospitals owned by the Emami Group under the brand AMRI. This acquisition includes three hospitals in Kolkata and one in Bhubaneswar, estimated to be worth around INR 2,300 Cr.

The acquisition led to the integration of these well-known brands under the Manipal Hospitals banner.

Manipal Hospitals assumed operational control of the AMRI units in Dhakuria, Mukundapur, Salt Lake, and Bhubaneswar as part of this strategic deal. Further, the Emami Group retained ownership of Kolkata's dental and diagnostic clinics.

Manipal Hospitals currently ranks as the second-largest hospital chain in India, boasting 9,500 beds, more than 5,000 doctors, and approximately 20,000 employees.

In contrast, the four AMRI hospitals have a combined capacity of 1,200 beds, employ around 800 doctors, and have about 4,500 staff members.

Strategy Behind the Move

The acquisition of the majority stake in Manipal Health Enterprises by Temasek, a Singapore-based investment firm, played a pivotal role in facilitating this expansion.

Presently, the Manipal Group, the original promoters of Manipal Health Enterprises, holds a 30% stake in the hospital chain, while Temasek owns 59%.

This acquisition is part of a larger trend in India's healthcare sector, characterized by a surge in mergers and acquisitions (M&A).

In 2022, M&A activity in the healthcare sector in India reached $4 billion, with an additional $2.2 billion in the first five months of 2023, according to Reuters.

The private healthcare sector in India is experiencing robust growth, with PwC projecting an annual growth rate of 12-14% for India's private healthcare market, currently valued at approximately $48 billion.

This growth is seen as a post-pandemic phenomenon, highlighting the country's increased importance of healthcare services and infrastructure.