A significant competitive bidding is underway for Sahyadri Hospitals, Maharashtra’s largest private hospital chain, with several major players expressing interest in acquiring the asset from the Ontario Teachers’ Pension Plan Board (OTPP). The bids are reportedly in the range of ₹4,500 to ₹5,000 crore.
Key Bidders
The prominent contenders in the acquisition of Sahyadri Hospitals include Manipal Hospitals, which is backed by Singapore’s Temasek Holdings and has a track record of strategic acquisitions such as Vikram Hospitals and Columbia Asia’s Indian operations. Malaysia-based IHH Healthcare is also in the fray, aiming to expand its presence in India, where it already operates Fortis and Gleneagles hospitals. Swedish private equity firm EQT Partners, known for its active investments in India’s healthcare sector, is eyeing Sahyadri as a strategic addition. American investment giant KKR & Co. has also shown interest in growing its healthcare portfolio in the country. Blackstone-owned Quality Care India is pursuing the acquisition as part of Blackstone’s broader consolidation strategy in Indian healthcare. Max Healthcare, based in Delhi, is among the bidders as well, seeking to strengthen its footprint in western India. In addition to these major players, other interested parties include Warburg Pincus and Ahmedabad’s Torrent Group. The deadline for bid submissions, originally set for May 1, has been extended to allow more time for these contenders to finalize their offers.
About Sahyadri Hospitals
Established in 1994, Sahyadri Hospitals operates 11 facilities across Maharashtra, including Pune, Nashik, and Ahmednagar, with over 1,200 beds and plans for further expansion. OTPP acquired a significant majority stake in Sahyadri Hospitals in August 2022 from Everstone Capital at a valuation of approximately ₹2,500 crore. The hospital chain has been focusing on expanding its specialties, including mother and childcare and oncology, and is expected to clock around ₹240 crore in EBITDA for FY25.
Strategic Importance
The acquisition of Sahyadri Hospitals represents a strategic move for the bidders to strengthen their presence in western India, particularly in Maharashtra’s burgeoning healthcare market. The deal is also indicative of the ongoing consolidation in India’s healthcare sector, driven by private equity investments and the pursuit of scalable healthcare models.As the bidding process unfolds, the acquisition of Sahyadri Hospitals is poised to be a landmark deal in India’s healthcare industry, potentially reshaping the competitive landscape and setting the stage for further consolidation.
