IHH Healthcare Completes Mandatory Tender Offer for Fortis Healthcare
IHH Healthcare, a leading Singaporean-Malaysian hospital chain, has completed a mandatory tender offer for Fortis Healthcare and Fortis Malar. This move increases its ownership stakes to 31.17 percent and 62.73 percent, respectively. The long-delayed acquisition signals a tighter integration in strengthening IHH’s pan-India platform.
A New Era of Innovation and Synergies
According to Dr Prem Kumar Nair, Group Chief Executive Officer, this milestone marks a springboard for accelerating innovation and deeper synergies between Fortis Healthcare and Gleneagles Healthcare India. This integration is expected to unlock operating efficiencies while lifting care quality nationwide.
Operational Integration and Expansion Plans
The operational integration is already underway. In July, Fortis agreed to manage five of six Gleneagles hospitals under an operations and maintenance framework. This move expands IHH’s ability to pool scale in procurement, talent, and complex services without diluting brand autonomy. IHH aims to add 2,000 beds by 2028, taking its capacity to 7,000 beds as tertiary and quaternary care demand deepens.
India's Private Hospital Market
India’s private hospital market is accelerating, with major players like Max Healthcare and Apollo Hospitals investing heavily in expanding their capacity. The market is expected to grow at a 7.6 percent CAGR through 2033, driven by tier-2 and 3 expansion and medical tourism. Some key highlights of the market include:
- India’s hospital market is valued at $136.6 billion in 2024.
- Max Healthcare plans to invest Rs 6,000 crore and add 3,700 beds by 2028.
- Apollo Hospitals has a Rs 8,000 crore programme to add more than 4,300 beds over five years.
This growing demand for private healthcare services in India presents opportunities for IHH Healthcare to strengthen its position in the market and provide high-quality care to patients.