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Manipal Hospitals expands with majority stake in AMRI Hospitals

Sep 21, 2023

By: BlinkX Research Team

Manipal Hospitals, India's second-largest hospital chain, has acquired an 84% majority stake in Kolkata-based AMRI (Advanced Medical Research Institute) Hospitals, a part of the Emami Group. The deal, valued at approximately Rs 2,300 crore, aims to fortify Manipal's presence in the eastern region, known for attracting patients from neighboring countries.

This move adds 1,200 beds to Manipal Hospitals, bringing their total capacity to 9,500 beds. The company envisions expanding to 12,000 beds in the next three years, both organically and through acquisitions.

Manipal Group, a major stakeholder in Manipal Hospitals, sees this acquisition as a strategic step towards becoming the largest hospital chain in eastern India. Emami Group chose to divest its majority stake in AMRI Hospitals to focus on its core business.

The transaction, a result of extensive negotiations and legal proceedings, aligns with Manipal's goal of expanding healthcare services in underserved regions. The company is set to establish additional hospitals in Bengaluru and Raipur, aiming to add more beds over the next 18-36 months through inorganic growth.

Emami Group directors Aditya Agarwal and Manish Goenka expressed their sentiment, emphasizing AMRI Hospitals' significance as a societal contribution rather than a mere business entity. They retain a 15% stake in AMRI Hospitals, and the Government of West Bengal will also hold a stake in the venture.