"Manipal Hospitals to Expand with 750 Beds in West Bengal and Odisha as Part of Eastward Growth Strategy"

Manipal Hospitals has unveiled ambitious plans to increase its bed capacity by 750 in West Bengal and Odisha over the next 3-5 years, marking a significant expansion of its presence in the eastern region of India. This move comes on the heels of the hospital group's recent acquisition of an 84 percent stake in AMRI Hospitals, valued at Rs. 2,300 crore, elevating its bed count in the East to approximately 2,000.

AMRI Hospitals currently operates three units in Kolkata and one in Bhubaneswar, Odisha. Speaking at the Healthcare East conference organized by the Confederation of Indian Industry (CII), Dilip Jose, Managing Director and CEO of Manipal Hospitals, expressed interest in exploring opportunities in smaller towns within West Bengal and Odisha. He stressed the importance of retaining patients within Kolkata for treatment.

Jose noted that existing Manipal Hospitals facilities in the East are operating at full capacity and revealed plans to establish at least three more hospitals in the region, including two in West Bengal and one in Odisha.

Manipal Hospitals, which has a national bed capacity of 9,500, typically aims for a minimum of 250 beds in greenfield projects, with an approximate investment of Rs 300 crore, excluding land and building costs. Jose explained that their general approach involves third-party construction to their specifications, with the hospital leasing the facilities. While the expansion strategy in the East might involve greenfield, brownfield, or lease models, it is indicative of the growing healthcare sector in the region.

The healthcare industry in the East has recently witnessed a series of deals, with Apollo Multispecialty Hospitals, Fortis Healthcare, and Medica Hospitals also pursuing expansion plans. Medica Hospitals, backed by Temasek, aims to increase bed capacity from 1,200 to 1,500 across its five eastern hospitals, with an investment commitment of Rs. 400 crore. Furthermore, Medica plans to offer 2,000 beds by 2025 through greenfield projects or acquisitions, with potential opportunities in Guwahati or Varanasi.

At the same conference, Rupak Barua, Chairman of the CII eastern region healthcare subcommittee and Group CEO of AMRI Hospitals Group, highlighted the growing trend of medical value travel (MVT) in India. He noted that MVT, currently contributing 10-12 percent to hospital revenues, is expected to increase to 15-18 percent in 2023, driven by factors such as pent-up demand, rising treatment costs in the West, and geopolitical influences.

HBL