Fortis Healthcare will invest approximately INR 840 Crs to add over 300 beds in Bengaluru. This includes acquiring People Tree Hospital Yeshwanthpur for INR 430 Crs and further investments of about INR 410 Crs. The company aims to scale up to 1500+ beds across seven facilities in the next three years, strengthening its focused cluster growth strategy in Bengaluru.
Acquisition of People Tree Hospital
Fortis Healthcare Limited has signed definitive agreements to acquire the 125-bedded People Tree Hospital (PTHY) in Yeshwanthpur, Bengaluru for INR 430 Crs. This will be a 100% acquisition of TMI Healthcare Private Limited, the entity operating PTHY’s business. The acquisition will be carried out by Fortis’s subsidiary, International Hospital Limited (IHL).
Additional Land and Investment Plans
As part of the transaction, IHL will also acquire the hospital building and land of PTHY, along with an adjacent land parcel, from the promoters of TMI Healthcare and an independent third party. The adjacent land, approximately 0.8 acres, provides the potential to expand the bed capacity to over 300 beds. The company plans an additional investment of INR 410 Crs over the next three years to augment bed infrastructure, medical equipment, and clinical programs, including Radiation Oncology.
Strategic Rationale
The acquisition aligns with Fortis’s vision to expand its presence in focused clusters. It will strengthen its position in Bengaluru, where it currently operates seven facilities. Fortis aims to leverage scale and synergies to enhance revenues and profitability. The transaction is expected to be completed by the end of January 2026, subject to customary closing conditions.
Management Commentary
According to Dr Ashutosh Raghuvanshi, MD & CEO of the Company, this acquisition supports the company’s growth strategy and enhances its Bengaluru market presence. Dr Jothi Neeraja, Founder, MD & CEO of People Tree Hospitals, stated that the transition to Fortis Healthcare marks a significant milestone, reflecting a commitment to clinical excellence.
Source: BSE