Fortis Healthcare to invest Rs 840 crore to add 300-plus beds in Bengaluru
Gurugram: Fortis Healthcare Limited (“FHL” or “Fortis” or the “Company”), amongst India’s leading healthcare delivery companies, announced signing of definitive agreements for the acquisition of the 125-bedded People Tree Hospital in Yeshwanthpur, Bengaluru (“PTHY”) by way of a 100% acquisition of TMI Healthcare Private Limited (“TMI Healthcare”), the entity under which the PTHY business operations reside. The said acquisition would be undertaken by FHL’s wholly-owned subsidiary, International Hospital Limited (IHL).
As part of the composite transaction, along with the acquisition of TMI Healthcare, IHL would also acquire the hospital building and the underlying land of PTHY from the promoters of TMI Healthcare and an adjacent land parcel from an independent third party, for a cumulative transaction value of INR 430 Crs (including debt residing with TMI Healthcare). The transaction shall be subject to customary closing adjustments as agreed in the definitive agreements.
PTHY is a leading 125-bedded multi-specialty hospital located in Yeshwanthpur, North-West Bengaluru. It is attractively located in a dense residential catchment with expanding commercial hubs in the vicinity and is well connected to major transportation hubs. The hospital is NABH-accredited and offers key specialities such as Cardiac Sciences, Orthopedics, Neuro Sciences, Renal Sciences and Gastroenterology.
The acquisition of the adjacent land parcel of ~0.8 acres provides the Company a potential to expand bed capacity to 300+ beds. An additional investment of INR 410 Cr is planned over the next 3 years in the facility to further augment bed infrastructure, medical equipment and clinical programs, including Radiation Oncology. Basis the current hospital revenues of approx. INR 74 Crs (FY 25), the Company believes it has an opportunity to strengthen existing operations; enhance revenues and profitability and simultaneously progress with the planned investment.
The transaction is expected to be consummated by the end of January 2026, subject to the completion of certain conditions precedent as stipulated in the definitive agreements.
Dr Ashutosh Raghuvanshi, MD & CEO of the Company, said, “The acquisition is in line with our vision to expand our footprint in focused clusters and enables us to leverage the benefits of scale and synergies. The acquisition is a strategically important addition and will further strengthen our position in the Bengaluru market, where we already have a significant presence across seven facilities (including O&M facilities) with a potential to scale up to 1500+ beds from 900 beds currently. The adjacent land parcel will further strengthen the spectrum of healthcare delivery offerings at this facility and enable us to deliver exceptional clinical care, ably supported by an experienced team of clinicians.”
Dr Jothi Neeraja, Founder, MD & CEO, People Tree Hospitals, said, “People Tree Hospitals co-founded with Dr. Upendra Kandluri, has always been guided by a vision of ethical, patient- centric and high-quality care. The strategic transition to Fortis Healthcare marks a pivotal milestone in this journey – reflecting our unwavering commitment to clinical excellence and robust governance. With Fortis’ extensive resources and expansive clinical programs, People Tree Hospital, Yeshwanthpur is now poised to reach new heights while upholding its founding values, ensuring continuity, modernization and long-term benefits for both patients and employees.”
