Manipal Hospitals to add 750 beds in WB, Odisha under east expansion plan

Manipal Hospitals plans to add 750 beds in West Bengal and Odisha over the next 3-5 years through both greenfield and brownfield projects, expanding its footprint in the East. This move follows the hospital's acquisition of an 84 per cent stake in AMRI Hospitals last month, raising its bed count in the East to around 2,000 with a deal valued at Rs 2,300 crore. AMRI Hospitals operates three units in Kolkata and one in Bhubaneswar, Odisha.

Speaking at the Healthcare East conference organised by the Confederation of Indian Industry (CII), Dilip Jose, Managing Director and CEO of Manipal Hospitals, expressed interest in exploring opportunities in smaller towns in West Bengal and Odisha. He emphasised the need to retain patients within Kolkata for treatment.

Jose pointed out that existing hospitals under the Manipal banner in the East are operating at full capacity. “We aim to establish at least three more hospitals – two in West Bengal and one in Odisha,” he noted.

Nationally, Manipal Hospitals boasts a capacity of 9,500 beds. For greenfield projects, the hospital typically aims for a minimum of 250 beds, with an approximate investment of Rs 300 crore, excluding land and building costs. "Usually, a third party constructs it to our specifications, and we lease it. That's our general approach,” Jose explained, referencing three ongoing greenfield projects in Bengaluru and one in Raipur that follow this model.

Regarding the expansion in the East, the strategy might be greenfield, brownfield, or a lease model.

The healthcare sector in the East has recently witnessed a series of deals. Apollo Multispecialty Hospitals acquired a partially constructed hospital in Sonarpur, Kolkata, from Future Oncology Hospital and Research Centre for Rs 102 crore. Additionally, Fortis Healthcare approved an agreement to acquire 99.9 per cent of Artistery Properties in Kolkata for Rs 32 crore.

Medica Hospitals, backed by Temasek, is also on an expansion trajectory. Ayanabh Debgupta, Co-founder and Joint Managing Director of Medica Hospitals, stated that they aim to boost bed capacity to 1,500 from 1,200 across their five hospitals in the East, with an investment commitment of Rs 400 crore.

By 2025, Medica plans to offer 2,000 beds through greenfield projects or acquisitions, possibly exploring opportunities in Guwahati or Varanasi.

At the same conference, Rupak Barua, Chairman of the CII eastern region healthcare subcommittee and Group CEO of AMRI Hospitals Group, highlighted that medical value travel (MVT) in India is predicted to grow in 2023 due to factors such as the pent-up demand, increased treatment costs in the West, and geopolitical influences. He mentioned that MVT, which currently contributes 10-12 per cent to hospital revenues, is anticipated to increase to 15-18 per cent.