IHH Healthcare India, a leading hospital chain, aims to expand its Indian presence via strategic acquisitions. Anurag Yadav, CEO of IHH Healthcare India, highlights India’s healthcare landscape, foreseeing substantial growth due to a young population and an aging demographic. With current hospitals concentrated in a few cities, their plan emphasizes Tier 2 and Tier 3 cities’ healthcare infrastructure development. IHH’s strategy focuses on acquiring hospitals with 150–250 bed capacities, targeting markets in Hyderabad, Bengaluru, Chennai, and Mumbai. While eyeing diagnostic ventures, they prioritize hospital growth. Yadav refrains from commenting on legal matters, reflecting IHH’s cautious approach in its expansion journey.
IHH Healthcare India, a leading multi-organ transplant and tertiary care hospital chain, is poised for significant expansion in India. With a stronghold in six Gleneagles Global Hospitals and a stake in Fortis hospitals, IHH’s CEO, Anurag Yadav, emphasizes India’s healthcare potential. Highlighting the nation’s growth trajectory, Yadav underlines the need for healthcare expansion into lesser-served cities. Their growth strategy revolves around acquiring hospitals of specific bed capacities, and targeting existing markets and surrounding regions. Additionally, while contemplating diversification into diagnostics, their immediate goal remains fostering hospital growth in the country.
Anurag Yadav, CEO of IHH Healthcare India, shared insights with Businessline, highlighting the immense potential within India and outlining their proactive strategy to further penetrate their existing markets. Here are excerpts from the conversation:
Q. How do you perceive the current landscape of India’s healthcare sector?
A. India is experiencing consistent growth and is projected to continue this trend for the next 25–30 years. With a burgeoning young population, the demand for healthcare services is expected to rise correspondingly. Looking ahead 15–25 years, the increasing elderly demographic underscores the continuous need for healthcare. Presently, 70% of hospitals are concentrated in only 30% of cities. To foster nationwide development, it’s crucial to expand healthcare infrastructure into Tier 2 and Tier 3 cities.
Q. Do you foresee consolidation in the sector?
A. Consolidation has already commenced, and in the coming years, we anticipate the emergence of three to four national players along with robust regional entities. Healthcare is inherently a regional market, contributing to this trend.
Q. What is IHH India’s preferred growth approach in the country?
A. We made our entry into India in 2017 through the acquisition of Global Hospitals, and our future strategy involves expanding our footprint in the Indian market through acquisitions. Our focus will be on hospitals with a standard bed capacity ranging from 150 to 250.
Q. Which markets are you targeting for expansion?
A. Our primary focus remains on our existing presence in Hyderabad, Bengaluru, Chennai, and Mumbai. Additionally, we aim to gradually extend our reach within 200–300 km of these markets.
Q. Are there plans to diversify into other business verticals, such as retail pharma?
A. While venturing into retail pharma isn’t under consideration, we intend to enter the diagnostics sector and plan to acquire smaller players with substantial value. However, our current aspiration revolves around expanding and nurturing hospitals.
Q. Regarding IHH Healthcare’s claim against Japan’s Daiichi Sankyo, could you provide any insights?
A. I am not the appropriate person to comment on this matter, and it’s also subjudice. Therefore, I’m unable to offer any comments regarding this issue.
IHH Healthcare’s pursuit of strategic acquisitions in India marks a decisive step towards expanding its healthcare footprint. Anurag Yadav’s insights shed light on India’s healthcare sector poised for immense growth due to demographic dynamics. The emphasis on regional expansion beyond major cities aligns with their vision for inclusive healthcare access. Targeting specific bed capacities and focusing on existing markets reflect IHH’s calculated expansion strategy. While contemplating diversification into diagnostics, their core focus remains nurturing and expanding hospitals. Refraining from commenting on legal matters underscores their cautious approach towards growth and sustenance in India’s evolving healthcare landscape.