Chennai, India-based multispecialty hospital chain Kauvery Hospital’s talks to acquire the 200-bed Fortis hospital located in Vadapalani, Tamil Nadu, are in advanced stage, reported the Times of India.
Kauvery Hospital plans to invest approximately Rs2.5bn ($30.48m) to acquire and renovate the hospital.
The company will add 50 additional beds, expand infrastructure and introduce new specialties at the acquired hospital.
The acquisition is part of Kauvery’s expansion strategy to become a hospital chain with around 3,500 beds in the next three years.
This report comes after Kauvery recently inaugurated a 250-bed hospital in south Chennai with an investment of around Rs3bn.
The integration of Fortis Vadapalani into the Kauvery Hospital chain will further strengthen its presence in Chennai.
Kauvery is also considering opening another hospital in north Chennai, which would take the chain’s total bed capacity in Chennai to more than 1,000 beds.
With eight hospitals, Kauvery Hospital is backed by investors including GSK Velu family office, Lightrock and IIFL AMC, which collectively hold a 51% stake in the healthcare chain.
A senior hospital administrator told the publication: “Fortis Vadapalani will soon become part of the Kauvery chain. In addition, we are planning one more facility in north Chennai to make Kauvery a 1,000-plus bed hospital chain in Chennai and become the second-largest hospital chain after Apollo in the city.”