Shalby to Acquire 87% Stake in Sanar International Hospitals for INR 102 Cr

Reportedly, this equity stake is expected to be completed within a period of one month, through primary infusion and secondary buy‐outs.

Ahmedabad-based Shalby Ltd, a multi-speciality hospital chain, plans to acquire an 87.26% stake in Gurugram-based Sanar International Hospitals (PK Healthcare) for around INR 102 Cr.

Reportedly, this equity stake is expected to be completed within a period of one month, through primary infusion and secondary buy‐outs.

On the strategic investment, Dr Vikram Shah, chairman, Shalby Limited, said, “P K Healthcare Pvt Ltd in Delhi/NCR, has built a reputation both in domestic and international markets in a short time on the back of its world-class facility, services and expertise of experienced doctors, and paramedical team.’’

Further, the investment is in line with its strategy to accelerate Shalby’s presence in the Delhi/NCR region and also consolidate its presence in the Northern part of India.

What the Strategic Acquisition Seeks

With this acquisition, Sanar International Hospitals will leverage Shalby’s global presence and leadership in orthopaedics. Moreover, Shalby Hospital seeks to serve its patients from the international market and the northern part of India, which will help to accelerate revenue of the group.

Sanar International Hospitals offers specialty care in areas including cancer, heart, blood and marrow transplant, kidney & liver transplant, bone & joint and neurosciences.

Additionally, Sanar International Hospitals has multiple tie-ups with various healthcare facilities across the globe and caters to the requirements of its patients through seven representative offices in the Middle East, Africa, CIS, SAARC and other international locations.

Currently, the hospital generates around 70% of its business from international markets catering to more than 60 countries.

Founded in 2018 by Naresh Kapoor, Sanar International Hospitals aims to provide quality care by using cutting-edge technology, human capital, and seamless services.

Shalby Hospital, on the other hand, was founded by Dr Vikram Shah in 1994. It was initially envisioned as a joint replacement centre. Today, it is known for its services in healthcare, clinical care, home care, and research.

Going forward, the hospital chain looks to add 321 beds to its current capacity. It is also planning to add more than 50 such franchises across India in the next 3-4 years.

Hospital Acquisitions Trend in India

Recently, leading private healthcare provider Max Healthcare Institute Ltd acquired Lucknow’s Sahara Hospital, a 550-bed healthcare facility for a total consideration of INR 940 Cr. This move marked Max Healthcare’s entry into Lucknow, one of the fastest-growing cities in Uttar Pradesh.

With this acquisition, Max Healthcare seeks to bring high-end medical programs such as oncology, and organ transplants thereby strengthening the existing programs including orthopaedics, cardiac sciences, neurosciences, and renal sciences, among others.

In June, last year, HealthCare Global Enterprises (HCG), a prominent cancer care provider, was planning to acquire hospitals in Tier-II and Tier-III Indian cities. This aligns with the company’s goal for growth and expansion in India through a combination of organic and inorganic opportunities over the next 3-5 years.

Moreover, HCG is conducting extensive market research to gain insights into the Indian cancer market, which is expected to witness significant growth due to increasing cancer incidences, disease relapse, growing affordability, and inflation. Estimates suggest that the oncology market in India will expand by 11-12% to reach INR 26,300 Cr by 2024.