KKR deepens India healthcare push with $200 mn Healthium MedTech plan

The private equity firm is focusing on entering areas such as cardiology, orthopaedics, and diagnostics, as India's medtech market is projected to grow to $50 billion over the next five years

Global private equity major KKR has allocated $150-200 million to acquire assets and expand medical devices manufacturer Healthium MedTech, as part of its ongoing efforts to deepen healthcare investments in India, Mint reported today.

 

KKR pursues bolt-on acquisition strategy

 

The firm is actively seeking scalable and profitable assets that can be integrated with Healthium, which it acquired last year for about ₹7,000 crore, under a bolt-on strategy. Capital and resources have already been set aside for this purpose.

 

According to the report, KKR also has the financial capacity to invest significantly more should new opportunities emerge. The private equity firm is particularly focused on broadening its product portfolio and entering new therapy areas such as cardiology, orthopaedics, and diagnostics.

 

 

India’s medtech market poised for rapid expansion

 

India’s medical technology market is projected to grow from $12 billion in 2023–24 to $50 billion over the next five years, according to an EY report. For KKR, Healthium adds to its growing portfolio of healthcare investments in India and the wider Asia-Pacific region.

 

KKR, which acquired Healthium through its fourth Asian fund, also holds stakes in JB Chemicals and Pharmaceuticals Ltd, Baby Memorial Hospital, Max Healthcare Pvt Ltd, Healthcare Global Enterprises Ltd, and Gland Pharma Ltd.

 

Consolidation drives private capital strategy

 

Gaurav Trehan, KKR’s co-head of Asia-Pacific and CEO of KKR India, said at a media roundtable in Mumbai last week that the firm had acquired Healthium the previous year and that it continued to record strong growth. He noted that KKR was actively exploring consolidation opportunities, adding complementary products, and leveraging Healthium’s robust sales and distribution network to drive further expansion.

 

Trehan added that healthcare, including services, medical products, and pharmaceuticals, remained a major thematic focus for the firm.

 

Private equity sees value in consolidation

 

This approach reflects a broader shift among private equity investors, who are increasingly backing bolt-on acquisitions to strengthen newly acquired platforms and drive operational synergies, said Vivek Pareek, partner at Saraf and Partners.

 

Several sectors, such as healthcare, financial services, and technology-enabled services, remain fragmented, creating strong incentives for consolidation, he added.

 

KKR replicates bolt-on success seen in JB Pharma

 

KKR had earlier implemented a similar bolt-on strategy with JB Pharma, acquiring four to five assets for growth before exiting with over fivefold returns. Baby Memorial Hospital has also pursued a series of acquisitions under this approach.

 

The bolt-on strategy typically involves acquiring smaller companies to expand operations, diversify offerings, or enter new markets. Other private equity-backed firms, including PAG-backed Manjushree Technopack, Temasek-backed Haldiram Snacks, and ChrysCapital-backed Theobroma, have also committed capital to such transactions.