IHH Healthcare eyes expansion in India, to add 2,000 beds by 2028

After completion of its mandatory tender offer in Fortis Healthcare and Fortis Malar Hospitals, Malaysian healthcare giant IHH Healthcare is aiming to add 2,000 beds in a bid to double down on value creation in India.

 

IHH, which is Asia’s largest multinational private healthcare provider, currently has over 5,000 beds across a combined network of 35 hospitals in 11 states. It has a presence in over 10 countries, which include India, China, Malaysia, Singapore and Turkiye.

 

The company is aiming to scale its footprint and remain on track to expand capacity by more than one-third to approximately 7,000 beds in India by 2028.

 

 

This comes after IHH had to wait for seven years for approval from the Securities and Exchange Board of India (Sebi) to proceed with its mandatory open offer to acquire a 26 per cent stake each in Fortis Healthcare and Malar Hospitals.

 

IHH had acquired a 31 per cent stake in Fortis through its subsidiary NTK in November 2018, but suspended the open offer for an additional 26 per cent after Japanese drugmaker Daiichi Sankyo filed a contempt plea against Fortis founders Malvinder and Shivinder Singh.

 

The deal was held up in court amid Daiichi Sankyo’s long-running dispute with the Singh brothers over its purchase of Ranbaxy Laboratories more than a decade ago.

 

“The completion of the Fortis open offer allows us to move decisively into the next phase of growth in India. This comes at a pivotal time as IHH undertakes a group-wide transformation to future-proof our business,” said Prem Kumar Nair, group chief executive officer at IHH Healthcare.

 

Calling India one of its most compelling growth opportunities, Ashok Pandit, group chief corporate officer at IHH, said that it will be supported by consistent volume growth and rising clinical complexity.

 

“Structural tailwinds, including higher incomes, broader insurance coverage and increasing demand for complex care, are driving sustainable revenue growth,” he added.

 

IHH said it is well-positioned to meet the growing demand of patients seeking high-quality care and outcomes, backed by strong governance and continued investments in cutting-edge medical technologies.

 

“Through strategic collaborations, including deeper synergies between Fortis Healthcare and Gleneagles Healthcare India, we aim to unlock operational efficiencies and elevate care delivery for patients across the country,” Nair added.