Manipal, Max Healthcare, and KKR Line Up to Bid for Sahyadri Hospitals

Several prominent healthcare groups, including Manipal Hospitals, Singapore’s IHH Healthcare, Blackstone-backed Quality Care India, Max Healthcare, KKR & Co., and EQT Partners, have submitted initial bids for Maharashtra's largest hospital chain, Sahyadri Hospitals.

According to a report by The Economic Times (ET), the bids range between Rs 4,500 crore and Rs 5,000 crore. The hospital chain, owned by Canada’s Ontario Teachers’ Pension Plan Board (OTPP), has extended its initial May 1 bid deadline by several weeks. Warburg Pincus and Ahmedabad’s Torrent Group have also expressed interest in acquiring the chain, according to reports.

OTPP had acquired Sahyadri Hospitals for approximately Rs 2,500 crore from Everstone Capital, outbidding Max Healthcare. Everstone had bought the chain in 2019 from founder and renowned neurosurgeon Charudutt Apte for Rs 1,000 crore. Sahyadri operates 11 hospitals in cities including Pune, Nashik, Ahilya Nagar, and Karad.

The hospital network employs 2,500 clinicians and 3,500 support staff, according to its website. Cofounders Apte, Sadanand Bapat, and Nitin Desai remain active in the chain, which began with the Pune Institute of Neurology in 1994.

In 2023, Sahyadri invested around Rs 750 crore to expand its footprint across the state. According to reports, the hospital chain is projected to generate approximately Rs 240 crore in EBITDA for FY25, making it an attractive acquisition target. Business Standard reports that the sale could fetch OTPP between Rs 4,000 crore and Rs 6,000 crore.

India’s Hospital M&A Boom Draws Global Investors

India's hospital sector is witnessing a surge in mergers and acquisitions, driven by increasing insurance coverage and demand for quality healthcare. Global private equity firms like Blackstone, Warburg Pincus, KKR, EQT, and Temasek are actively investing in Indian hospitals.

Manipal Hospitals, which is preparing for an IPO, has led the consolidation wave with multiple takeovers, including AMRI Hospitals. KKR returned to the sector with a $300 million investment in Baby Memorial Hospital. EQT entered in 2022 with a stake in AIG Hospitals.

India’s low hospital bed ratio—just 16 per 10,000 people—has reportedly prompted plans for 22,000 new beds over the next few years. With healthcare spending expected to rise to 2.5% of GDP by 2025, the sector’s expansion is poised to continue.