In a significant development for India's healthcare landscape, Manipal Hospitals, the country's second-largest hospital chain, announced its acquisition of an 84% stake in AMRI Hospitals Ltd. This strategic move not only increases Manipal's bed capacity to a staggering 9500 but also positions it as a formidable national healthcare provider. The acquisition signifies Manipal's expansion into Eastern India, reinforcing its commitment to delivering quality healthcare services across the country.

Singapore government's investment arm, Temasek Holdings, which owns 59% of Manipal Hospitals, facilitated this acquisition. A payment of Rs 2300 crore was made to Emami Group promoters, including settling debts. The enterprise's overall valuation stood at Rs 2400 crore, and AMRI Hospitals had an existing debt of Rs 1600 crore.

Manipal Hospitals made its initial beginning in Eastern India with the acquisition of Columbia Asia Hospitals in 2021. The Columbia Asia Hospital, located in Kolkata's Salt Lake area, marked Manipal's entry into this region. The acquisition of AMRI Hospitals further solidifies Manipal's presence in Eastern India, now establishing it as the largest hospital chain in the area.

Stakeholders in the Deal: As part of the deal, the Emami Group will retain a 15% stake in the hospital chain as an investor. Meanwhile, the West Bengal government will continue to hold a one per cent stake. This collaboration demonstrates a shared commitment to bolster healthcare services in the region.

Growth Strategy and Vision: Manipal Hospital’s Managing Director and CEO, Dilip Jose, expressed how this acquisition aligns perfectly with their growth strategy. He mentioned that despite already being one of the largest hospital chains in Eastern India, the acquisition allows them to extend their reach to tier II cities in the eastern region. The integration of AMRI Hospitals into the Manipal family will occur over the next 6-8 months, including a rebranding to Manipal Hospitals.

Currently, AMRI Hospitals operates in four locations—Dhakuria, Mukundapur, and Salt Lake in Kolkata, as well as Bhubaneswar. With a combined capacity of over 1,200 beds, a team of more than 800 doctors, and over 5,000 healthcare professionals, AMRI Hospitals has been a key player in healthcare delivery in the region.

Emami Group director Aditya Agarwal emphasized that this move aligns with their core objectives. They aim to concentrate on their primary businesses while retaining a 15% stake in AMRI Hospitals. The West Bengal government's continued one per cent stake reinforces the importance of this initiative for the state's healthcare landscape.

Ranjan Pai, Chairman of Manipal Education and Medical Group, expressed that Manipal Hospitals has always had patrons from Eastern India and neighbouring regions, including Bangladesh. With this acquisition, Manipal seeks to further strengthen its presence in Eastern India—a region historically underserved in terms of healthcare. Jose hopes that this brand expansion will significantly reduce the number of patients travelling to South India for medical care.

Manipal Hospital’s acquisition of an 84% stake in AMRI Hospitals is a significant leap forward in its mission to provide quality healthcare services across India. With an expanded footprint in Eastern India, Manipal aims to address the healthcare needs of this region comprehensively. This strategic move holds the promise of improved healthcare accessibility and quality for millions in Eastern India, marking a transformative moment in the nation's healthcare journey.