New Delhi:
In a landmark healthcare merger, Manipal Health Enterprises—India’s second-largest hospital chain—has acquired Sahyadri Hospitals from Ontario Teachers’ Pension Plan (OTPP) for ₹6,400 crore. The acquisition marks a strategic expansion of Manipal’s network in western India, increasing its national bed capacity to 12,000, according to a report by The Economic Times.
Manipal Beats Rivals in High-Stakes Bidding War
The deal follows a fiercely competitive bidding process involving major players like Fortis Healthcare, Aster DM Healthcare, and EQT. Manipal ultimately outbid them all after OTPP decided to divest its stake in Sahyadri Hospitals. The acquisition brings 11 hospitals in Maharashtra—including in Pune, Nashik, Ahilya Nagar, and Karad—under Manipal’s control, supported by 2,500 clinicians and 3,500 support staff.
Earlier, we had reported Manipal’s leading bid of ₹6,838 crore (approx. USD 820 million), outshining offers from global and domestic giants such as Blackstone, IHH-backed Fortis, KKR-backed Quality Care Hospitals, and others.
Chairman Ranjan Pai Hails Strategic Expansion
Commenting on the acquisition, Ranjan Pai, Chairman of the Manipal Education and Medical Group, said,
“This acquisition will strengthen our presence in Western India, enabling us to extend world-class healthcare to more patients.”
This purchase follows Manipal’s recent ₹2,400 crore acquisition of AMRI Hospitals in 2023 and ₹2,100 crore acquisition of Columbia Asia India in 2021. It comes on the heels of a $600 million debt infusion from KKR to fund Manipal’s aggressive growth and acquisition plans ahead of its anticipated IPO.
OTPP Clocks 2.6x Return on Investment
The deal also represents a high-yield exit for OTPP, which had acquired Sahyadri from Everstone Capital in August 2022 for ₹2,500 crore. Selling it at ₹6,400 crore gives OTPP a 2.6x return in less than three years. The deal values Sahyadri at 31x its FY25 projected EBITDA of ₹210 crore, aligning with valuation multiples of major players like Apollo Hospitals (36x).
OTPP Highlights Strategic Growth
Reflecting on the investment, Deepak Dara, Senior India Head at OTPP, said,
“We saw the potential to build on Sahyadri’s strong brand to create a regional healthcare leader.”
Rahul Mukim, Managing Director of Private Capital at OTPP, added,
“Our partnership with Sahyadri focused on unlocking long-term value—investing behind key specialties, expanding reach and building institutional processes.”
India’s Healthcare Sector Sees Growing Consolidation
The acquisition underscores the growing trend of consolidation in India’s private healthcare market, as national chains like Manipal seek to absorb regional players to build pan-India hospital networks. For OTPP, this deal concludes a successful three-year investment journey, which began with Everstone’s 2019 acquisition of Sahyadri from its founder, Dr. Charudutt Apte, for ₹1,000 crore.
