Fortis Healthcare Buys Bengaluru Hospital for ₹430 Cr, Plans Major Expansion

Fortis Healthcare Strengthens Bengaluru Presence

Fortis Healthcare Ltd. has announced a significant move to bolster its footprint in the southern Indian market by acquiring the 125-bed People Tree Hospital in Yeshwanthpur, Bengaluru. The transaction, valued at ₹430 crore, was executed through its wholly-owned subsidiary, International Hospital Ltd. (IHL), which signed definitive agreements for a 100% acquisition of TMI Healthcare Pvt. Ltd., the entity operating the hospital. This strategic acquisition is part of Fortis's cluster-focused growth strategy and signals a major investment in one of India's key healthcare markets.

Details of the Transaction

The acquisition is a comprehensive deal that includes more than just the hospital's operations. The ₹430 crore consideration covers the 100% equity stake in TMI Healthcare, the hospital building, the underlying land, and an adjacent 0.8-acre land parcel. The amount also incorporates the existing debt held by TMI Healthcare. The entire transaction is structured to give Fortis complete control over the asset and its future development potential. The deal is subject to the completion of certain precedent conditions and is expected to be finalized by the end of January 2026.

A Strategic Vision for Expansion

Fortis Healthcare has outlined an ambitious expansion plan for the newly acquired facility. The company has committed an additional investment of ₹410 crore over the next three years. This capital will be used to significantly upgrade the hospital's infrastructure, augment its medical equipment, and strengthen its clinical programs. A key part of this expansion is leveraging the adjacent land parcel to increase the hospital's capacity from its current 125 beds to over 300 beds. The investment will also facilitate the introduction of new specialties, including a radiation oncology unit, broadening the scope of care available at the facility.

Dr. Ashutosh Raghuvanshi, the Managing Director and CEO of Fortis Healthcare, described the acquisition as a "strategically important addition." He emphasized that the move aligns with the company's vision to expand its footprint in focused geographical clusters. This acquisition will allow Fortis to leverage benefits of scale and create synergies with its existing network in Bengaluru.

Impact on Bengaluru's Healthcare Market

The acquisition of People Tree Hospital significantly strengthens Fortis's position in the competitive Bengaluru healthcare landscape. The company already operates seven facilities in the city, including those under operations and maintenance (O&M) agreements, with a combined capacity of around 900 beds. With this acquisition and the planned expansion, Fortis aims to scale its total bed capacity in Bengaluru to over 1,500 beds within the next three years. This move solidifies its status as a leading healthcare provider in the region, catering to a growing population in a key residential and commercial hub.

About People Tree Hospital

People Tree Hospital is a well-regarded, NABH-accredited multi-specialty facility located in northwest Bengaluru. It is strategically situated in a residential area with expanding commercial hubs and excellent connectivity to major transportation links. The hospital offers services across several key specialties, including cardiac sciences, orthopedics, neurosciences, renal sciences, and gastroenterology. Based on its current operations, the hospital reported revenues of approximately ₹74 crore in FY25, providing a solid base for Fortis to build upon.

Key Financials at a Glance

To provide a clear overview of the transaction, the key financial and operational figures are summarized below.

Market Reaction and Broader Context

The market responded positively to the announcement. On the preceding trading day, shares of Fortis Healthcare closed at ₹889 per share, marking a 2.6% increase. The stock has demonstrated strong performance throughout the year, with a year-to-date gain of 25.5%. This acquisition also aligns with the broader strategy of Fortis's primary shareholder, Malaysia's IHH Healthcare, which has announced its own plans to expand capacity in India. The move indicates a continued focus on brownfield expansions to accelerate growth and consolidate market presence.

Conclusion

Fortis Healthcare's acquisition of People Tree Hospital is a calculated and strategic investment aimed at deepening its market penetration in Bengaluru. With a total commitment of ₹840 crore for both the acquisition and future expansion, Fortis is poised to significantly enhance its service offerings and capacity in the city. This move not only strengthens its competitive position but also underscores its commitment to long-term growth in key Indian markets.