Manipal Hospitals Strengthens Foothold with Sahyadri Acquisition

Manipal Hospitals has acquired Pune-based Sahyadri Hospitals for INR 6,000 crore, significantly expanding its strategic footprint in Maharashtra. This acquisition is poised to offer Manipal a platform of 3,000 to 5,000 beds, enhancing its presence in the western region of India. With Maharashtra's population of over 60 million and its numerous high-density urban centers, this move positions Manipal as a key player in the region. According to Kaivaan Movdawalla, Partner at Ernst & Young India, Sahyadri provides an excellent platform for growth due to the underserved nature of the area, where key medical specialties like cancer and transplants have a penetration gap of 30% to 40%. Movdawalla praised Sahyadri’s concentric expansion strategy from Pune into tier-two cities, which has allowed it to build a comprehensive model of care. This transaction is part of Manipal's broader M&A-driven growth strategy, which coincides with its preparation for a potential IPO. Movdawalla also highlighted the trend of regional hospital chains establishing strong holds in their respective areas by catering to local needs.