What explains feverish deal-making in India's hospital sector
India's hospital sector is abuzz with feverish deal-making activity. The latest of big deals which are consolidating the sector and bringing big players into it is by a New York-based global private-equity and investment company, KKR, which has bought a controlling stake in leading cancer care hospital chain Healthcare Global (HCG) from private equity peer CVC Capital Partners for nearly $400 million.
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By acquiring Baby Memorial Hospital last year, KKR made a comeback to the sector after one of its biggest paydays in India exiting Max Healthcare two years ago. “Healthcare continues to be a thematic focus for KKR in India, our investment in HCG will support the development of medical infrastructure and the delivery of critical oncology services and care to more patients in the country,” said Akshay Tanna, KKR's Head of India Private Equity.
Also Read: KKR to buy cancer care hospital chain HCG from CVC for $400 million
The race to buy into Indian hospitals
Deal-making in India's healthcare sector has surged in recent years, with hospitals now commanding the largest share of foreign direct investment (FDI) within the sector, TOI had reported in December. In FY24, hospitals accounted for 50% of the FDI in total healthcare, translating to $1.5 billion. This marks a significant increase, as the share of hospitals in healthcare FDI has more than doubled
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