India’s leading speciality cancer care chain HealthCare Global Enterprises (HCG) has announced the acquisition of a controlling stake in Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI), a 196-bedded facility in Visakhapatnam, India, for an enterprise value of Rs4.14bn ($49.6m).

HCG will initially hold a 51% stake in MGCHRI, with a plan to acquire an additional 34% over the next 18 months, reported The Economic Times.

The Visakhapatnam hospital’s revenue from operations for FY 2024 is projected at Rs1.20bn, with an EBITDA of Rs422m.

HCG anticipates that this acquisition will significantly enhance its annual EBITDA by Rs3 per share and solidify its leadership position in the Vizag region.

The demand for private cancer care services in Visakhapatnam is robust, showing a growth rate exceeding 15% year-on-year.

Established in 1986 and led by oncologist Dr Murali Krishna Voonna, MGCHRI is equipped with advanced medical infrastructure. This includes two linear accelerators, a PET CT scanner, a robotics surgery system, and a bone marrow transplant unit.

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The hospital’s clinical team consists of 31 doctors, including 12 surgical, six radiation, and four medical oncologists.

With its headquarters in Bengaluru, HCG operates 21 comprehensive cancer centres across India and Africa. The company has also revealed plans to expand its footprint by opening two new comprehensive cancer care centres in Bengaluru, Karnataka, with operations expected to commence in early 2025.

In a discussion with The Hindu BusinessLine, HCG CEO Raj Gore expressed the company’s strategy to add 475 beds over the next three years. Additionally, the company is planning to establish seven new greenfield projects in cities such as Mumbai, Kolkata, Baroda, and Nagpur within the next three to four years.