HCG, India’s largest specialty cancer care chain, announced on Friday its acquisition of a controlling stake in Visakhapatnam-based Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI). The acquisition, valued at Rs 414 crore, will see HCG initially securing a 51% stake in the 196-bed facility, with plans to acquire an additional 34% stake over the next 18 months.
MGCHRI, established in 1986 and led by onco-surgeon Dr. Murali Krishna Voonna, has a strong reputation for advanced cancer care. The hospital is equipped with state-of-the-art medical infrastructure, including two LINAC (linear accelerators) machines, one PET CT scanner, one Robotics Surgery System, and a dedicated Bone Marrow Transplant (BMT) unit. Its clinical team comprises 31 doctors, including 12 surgical, 6 radiation, and 4 medical oncologists.
The acquisition is strategic for HCG, as it significantly enhances their presence in the Visakhapatnam region. The hospital’s revenue from operations for FY24 was Rs 120.2 crore, with an EBITDA of Rs 42.2 crore. HCG projects that this acquisition will boost its annual EBITDA by Rs 3 per share, solidifying its leadership in the region.
The demand for private cancer care services in Visakhapatnam is growing rapidly, at a rate of over 15% year-on-year. This growth presents a lucrative opportunity for HCG to expand its services and capacity. As part of the acquisition, HCG and MGCHRI’s management plan to optimize the hospital’s capacity potential by adding over 25 additional beds.
HCG, headquartered in Bengaluru, operates a network of 21 comprehensive cancer centers across India and Africa, making it the largest provider of cancer care in India. This acquisition not only strengthens HCG’s position in the market but also underscores its commitment to expanding access to advanced cancer care services in India.
SOURCE:
ECONOMICS TIMES
