Krishna Institute of Medical Sciences (KIMS) Hospitals, a prominent healthcare provider based in Hyderabad, has recently completed the acquisition of Queen’s NRI Hospital in Visakhapatnam for Rs 75 crore. This strategic move is part of KIMS Hospitals’ broader strategy to expand its presence in the Vizag healthcare market, underscoring its commitment to enhancing medical services in the region.
Details of the Acquisition
- Acquisition Value: The acquisition was valued at Rs 75 crore, conducted entirely through a cash transaction.
- Stake Acquisition: Krishna Institute of Medical Sciences Hospitals acquired a 100% stake in Chalasani Hospitals Pvt Ltd, the holding company of Queen’s NRI Hospital.
- Regulatory Compliance: The acquisition process involved a formal share purchase agreement with the former promoters and shareholders of Chalasani Hospitals Pvt Ltd.
- Expected Completion: The transaction is expected to be finalized within a month from the regulatory filing.
About Queen’s NRI Hospital
- Location and Facility: Queen’s NRI Hospital is strategically situated in a prime area of Visakhapatnam, occupying a spacious 1.5 lakh sq ft facility.
- Bed Capacity: Currently, the hospital boasts a capacity of 200 beds, catering to a diverse range of medical specialties.
- Financial Performance: In the fiscal year 2022-23, Queen’s NRI Hospital reported revenues amounting to nearly Rs 63 crore, reflecting its robust operational performance and market position.
Strategic Rationale
- Market Expansion Strategy: By acquiring Queen’s NRI Hospital,Krishna Institute of Medical Sciences Hospitals aims to strengthen its foothold in Vizag’s competitive healthcare landscape.
- Geographical Advantage: The hospital’s location offers strategic advantages, being situated in a densely populated area with significant healthcare needs.
- Enhanced Service Offering: The acquisition enables KIMS Hospitals to enhance its service offerings in Vizag, particularly in critical medical specialties.
- Competitive Edge: With the addition of Queen’s NRI Hospital, KIMS Hospitals consolidates its position as one of the largest healthcare providers in Visakhapatnam, bolstering its competitive edge in the local market.
Impact on KIMS Hospitals
- Expanded Bed Capacity: The acquisition adds 200 beds to KIMS Hospitals’ existing infrastructure in Vizag, bringing the total bed capacity to 630 beds.
- Addressing Healthcare Demand: This strategic move addresses the growing demand for quality healthcare services in Vizag and its surrounding areas.
- Future Growth Prospects: KIMS Hospitals remains committed to exploring further growth opportunities in Andhra Pradesh, leveraging both organic and inorganic expansion strategies.
Chairman’s Perspective
Image Source KIMS Hospital
- Statement by B Bhaskara Rao: Mr. Rao, Chairman and Managing Director of KIMS Hospitals, emphasized the significance of the acquisition in advancing the hospital’s expansion strategy in Andhra Pradesh.
- Vision for the Future: He reiterated Krishna Institute of Medical Sciences Hospitals’ commitment to enhancing healthcare accessibility and quality across the region, ensuring sustainable growth and community service.
Overview of KIMS Hospitals
- Current Network: KIMS Hospitals operates a network of 12 hospitals across Telangana, Andhra Pradesh, and Maharashtra, collectively offering 3,975 beds.
- Medical Specialties: The hospitals provide comprehensive healthcare services across 40 specialties and super specialties, catering to diverse medical needs.
- Geographical Presence: Apart from Vizag, KIMS Hospitals has established facilities in key cities such as Secunderabad, Gachibowli, Nellore, Rajahmundry, Srikakulam, Ongole, Anantapur, Kurnool, and Nagpur.
Previous Entry into Vizag Market
- Initial Expansion: KIMS Hospitals initially ventured into the Vizag market through the acquisition of ICON Hospitals in 2018, marking the beginning of its strategic expansion in the region.
- Continued Growth Trajectory: The acquisition of Queen’s NRI Hospital represents a significant milestone in KIMS Hospitals’ ongoing efforts to expand its footprint and consolidate its market presence in Vizag.
The acquisition of Queen’s NRI Hospital by KIMS Hospitals exemplifies a strategic initiative aimed at enriching healthcare access and quality in Visakhapatnam. With a steadfast commitment to serving the community and advancing medical excellence, KIMS Hospitals continues to evolve as a leading healthcare provider in South India. Looking ahead, the hospital remains dedicated to pursuing further growth opportunities, thereby reinforcing its position as a trusted healthcare partner in Andhra Pradesh and beyond.
Join TISHHA.