Bajaj Group likely to make an investment of Rs 10,000 cr for hospital chain

By Advait Palepu, P R Sanjai and Baiju Kalesh

   

Bajaj Group has earmarked Rs 10,000 crore ($1.1 billion) as an initial investment to establish a chain of hospitals in India, according to people familiar with the matter. 

 

The conglomerate intends to invest the sum in phases to build out a network of affordable and high-class hospitals and health-care facilities, according to the people, who asked not to be identified because the information isn’t public. 

 

A representative for Bajaj didn’t respond to a request for comment. 

 

Indian media including the Economic Times reported in August that Bajaj planned a foray into hospitals, without disclosing how much it aimed to invest. 

 

 

Bajaj’s move coincides with growth in Indian health care as the nation’s wealth and insurance coverage increases and the number of people reaching retirement age accelerates. The country’s biggest private health-care company is Apollo Hospitals Enterprise Ltd., which reported revenue of about Rs 19,000 crore for the year through March 2024 and net income of over Rs 870 crore.

 

The billionaire Bajaj family started out in sugar and cotton a century ago before expanding into a range of other areas, including motorcycles — its flagship Bajaj Auto Ltd is one of the world’s biggest two-wheeler makers. 

 

The hospital business will initially be led by Nirav Bajaj, son of Bajaj Auto Chairman Niraj Bajaj, the people said, without disclosing when the chain might be launched. 

 

The Bajaj family, which is worth about $20 billion, founded its conglomerate in 1926. Among its 40 companies, Bajaj Allianz General Insurance provides health insurance, while Bajaj Finserv Health Ltd. is a consumer health-care platform that offers telemedicine, lab tests and online pharmacy services. Bajaj Vitality was also formed last year.  

 

India’s top listed hospital chains performed well in the stock market leading up to this year. Apollo Hospitals’ shares climbed 28 per cent in 2024, while Max Healthcare Institute Ltd. soared 64 per cent.