VPS healthcare in talks with Indian hospital Chains for takeover
According to sources, in the healthcare industry, the first facilities to be tapped by this colossal $ 1 billion revenue raiser group have been Mumbai’s the Lakeshore Hospital,Dr. LH Hiranandani Hospital and New Delhi’s Rockland hospital. The aim being to take over some of the units of these large healthcare groups.
"We are in talks with RHL for acquisition of their three hospitals in New Delhi. We are also negotiating with L H Hiranandani for acquisition of one of their hospitals in Mumbai," said S K Abdulla, CEO of Lakeshore Hospital, Kochi, part of VPS Healthcare.
Vayalil follows in line to acquire hospitals in India, after Dr Prathap C Reddy-led Apollo Hospital Enterprises, Shivinder and Malvinder Singh's Fortis and Ranjan Pai-driven Manipal Hospitals. The other formidable contenders from the middle east being B R Shetty of NMC Healthcare and Azad Moopen of Aster DM Healthcare, both attempting to get a foothold in the healthcare industry of the Indian sub continent. Vayalil, VPS chairman and MD, confirmed the negotiations, without letting out details of the negotiations.
A project being developed in Thane by the Hiranandani group, expected to be ready within an year, is of primary interest to VPS healthcare. . "It's a greenfield project with 200 beds and 4.36 lakh sq ft of space. People are talking to us while we are slowly building and VPS is one of them," explained Dr Sujit Chatterjee, CEO, L H Hiranandani Hospitals. The Hiranandani hospital negotiations come after the acquisition of controlling shares of the 350 bed Lakeshore hospital facility. In an earlier report, by Medical Dialogues, the entire take over proceedings have been covered.
The other group that is supposedly on Vayalil’s mind being the Rockland group, with three operational facilities in Qutab, Dwarka and Gurgaon and a planned capacity of 800 beds; the operational ones being much lower. Reports about acquisition of some of Rockland properties by VHS healthcare are yet to be confirmed. Attempts to contact senior executive of the Rockland group met with no response. However, there are reports that the International Finance Corporation, an investor partner of Rockland is keen to build a multi speciality expanse in the NCR.
With a budget of 1000 crores, VPS besides following the inorganic route is also going ahead with a greenfield project hospital, in Kozhikode, Kerala.
Begun in 2007, VPS today is a network of 16 hospitals, 112 medical centres & clinics and 28 pharmacies. The leader being its largest tertiary care provider, Burjeel Hospital, in Abu Dhabi.
Another diversification by the VPS of late is the pharmaceutical manufacturing formulation facility in Abu Dhabi for cancer drugs, vaccines and injectibles. This facility is meant to supply formulations to America, Japan, Middle East, Japan and Europe.
Arete Advisor reports that India’s healthcare industry is fertile ground for expansion in the face of 1.3 million hospital beds; these amounting to nine beds for every 10,000 people;way below WHO expectations. Government run units add another 6.5 lac; a 1.8 lac coming in from standalone private hospitals and 4.2 being nursing home and neighborhood clinic additions. The Corporate chain owns a meagre number of 60,000 beds adds TOI.