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IHH Healthcare India, a leading multi-organ transplant and tertiary care hospital chain, is set to fuel its Indian expansion through strategic acquisitions. While internationally it has seven well-known hospital chain brands, in India it presently oversees six Gleneagles Global Hospitals, with over 1,200 beds across Hyderabad, Bengaluru, Chennai, and Mumbai, apart from a 31 per cent stake in Fortis hospitals.
In a conversation with businessline, Anurag Yadav, CEO of IHH Healthcare India, emphasised the country’s vast potential, outlining their aggressive strategy to expand further within their existing markets. Excerpts:
How do you read the present landscape of the healthcare sector in India?
As a country, we are growing, and we will continue to do so for the next 25–30 years. Moreover, with a burgeoning young population, we anticipate a corresponding rise in healthcare demand. Looking ahead 15–25 years, the increasing ageing demographic further emphasises the perpetual need for healthcare. Currently, 70 per cent of hospitals are concentrated in 30 per cent of cities. To foster nationwide development, a critical focus should be on expanding healthcare infrastructure into Tier 2 and Tier 3 cities.
Do you see some consolidation in the sector?
A certain degree of consolidation has already started; in fact, in the coming years, we expect to have three to four national players and strong regional players because healthcare is again a very regional market.
What is IHH India’s preferred channel of growth in the country?
We entered India in 2017 via the Global Hospitals acquisition, and our forward strategy involves expansion in the Indian market through acquisitions, focusing on hospitals with a standard size of 150–250 beds.
What are the markets that you plan to expand into?
Our primary focus is on our existing presence in Hyderabad, Bengaluru, Chennai, and Mumbai. Additionally, we expect to gradually expand our reach within 200–300 km of these markets.
Any plans for entering other business verticals, like retail pharma?
While venturing into retail pharma is not in consideration, we want to get into diagnostics and plan to acquire the smaller players, which have some value. But for now, our aspiration is to have hospitals and grow hospitals.
IHH Healthcare filed a claim against Japan’s Daiichi Sankyo recently. Can you provide some details on the same?
I am not the right person to comment on this; also, it is subjudice. No comments on this matter.
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