Manipal acquired a controlling share in AMRI Hospitals for Rs 2,300 crore

Manipal Hospitals, India's second-largest hospital chain, has secured an 84 percent controlling stake in Kolkata-based AMRI Hospitals, a part of the Emami Group, as part of its strategic expansion plans in the eastern region of the country. Although the exact deal amount remains undisclosed, industry insiders estimate it to be around Rs 2,300 crore. With the addition of 1,200 beds from AMRI, Manipal Hospitals now boasts a total of 9,500 beds, and it has ambitious plans to further expand its capacity to 12,000 beds within the next three years through a combination of organic growth and acquisitions.

For Manipal Group, which holds a significant stake in Manipal Hospitals, this acquisition aligns perfectly with its overarching strategy of establishing a more extensive presence across eastern India and ultimately emerging as the predominant hospital chain in the region. Conversely, the Emami Group chose to divest its majority stake in AMRI Hospitals to focus more intently on its core business operations, including fast-moving consumer goods (FMCG). Dr. Ranjan Pai, Chairman of Manipal Education and Medical Group (MEMG), expressed that this acquisition perfectly aligns with their goal of fortifying their presence in eastern India, a region that has historically lacked adequate healthcare resources.

Dilip Jose, MD, and CEO of Manipal Hospitals, shared their plans to further expand into tier-2 cities and towns in West Bengal, supplementing their existing presence with four hospitals in Kolkata. The hospital group is already in the process of establishing three hospitals with a combined bed capacity of 750 in Bengaluru, in addition to adding another 350 beds in Raipur. The Manipal Group has laid out an ambitious roadmap to increase its bed count to a staggering 12,000 beds across India. They intend to achieve this growth through a combination of organic expansion and strategic acquisitions over the next 18–36 months.

Aditya Agarwal and Manish Goenka, directors at the Emami Group, explained that they decided to divest the majority of their stake in AMRI Hospitals as part of their broader strategy to sharpen their focus on their core business operations. Nevertheless, they have retained a 15 percent stake in AMRI Hospitals, and the Government of West Bengal will also hold a stake in the institution. Emami's promoters are actively working to reduce the pledge of their shares in the FMCG company Emami Ltd., which currently stands at 33 percent. Notably, in April, Temasek acquired an additional 41 percent stake in Manipal Health Enterprises (MHE), valuing MHE at Rs 40,000 crore. Manipal Group now holds a substantial 30 percent stake in MHE.

The road to finalizing the AMRI-Manipal deal was not without its challenges. The negotiations were protracted and complicated, with legal disputes further complicating matters. In fact, these discussions were rekindled only in February, following earlier disagreements. Max Healthcare was reportedly also in contention for the acquisition of AMRI hospitals, although it has not officially confirmed its participation. This strategic acquisition positions Manipal Hospitals for substantial growth in the eastern region, which is experiencing an increasing demand for high-quality healthcare services, including patients from neighbouring countries. Additionally, it solidifies Manipal's stature as a major player within India's healthcare landscape.

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Manipal acquired a controlling share in AMRI Hospitals for Rs 2,300 crore

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