Manipal Health gears up to take on Fortis threat

Manipal Health Systems (MHS), the Bangalore-based Rs 500 crore healthcare chain focussed on South India, is losing the services of its long-serving MD & CEO R Basil, at a crucial juncture when there is an emerging threat from Fortis Healthcare which is expanding its presence in South India.

Basil, after a stint of six years with this firm, is moving out after having spearheaded this chain from around Rs 60 crore to Rs 500 crore.

Manipal Health Systems manages three tertiary care hospitals, eight secondary care hospitals and nine primary care centres in south India and according to industry sources, it probably has about 60 facilities either managed by it or owned by it.

The group which is set to see revenues of around Rs 500 crore this fiscal, meanwhile, is also looking to raise funds for its next stage of expansion. In the meantime the group had also seen an investment by IDFC about three years ago. The group believes, it now needs to build bed strength, and build hospitals. Hence, it is looking for the right valuation for raising money.

The healthcare provider would have consolidated its position further, but for the recent buyout of some of Wockhardt Hospitals’ properties by Fortis.

While Fortis has expanded into the south, Manipal has remained a south-based healthcare provider. It’s earlier attempts to enter north with a hospital in New Delhi has not exactly been successful. Meanwhile, the Mumbai foray has been hanging in balance.

The firm had earlier hoped to raise Rs 600-700 crore from the markets. But, the global slowdown and the stock market crash put paid to the plans.

On his achievements, Basil said, “I corporatised the group. From 2002, since I took over, it grew from a Rs 62 crore group to one that is expected to earn around Rs 500 crore this fiscal.”