Max Healthcare Institute Ltd. makes a notable acquisition, securing 100% stake in Alexis Multi-Speciality Hospital Private Limited for Rs. 412 crore. This move bolsters Max Healthcare’s presence in Nagpur and Western India, promising enhanced healthcare services to the region’s populace. Alexis Hospital’s advanced facilities and strong financial performance, coupled with Nagpur’s strategic significance, position this acquisition as a pivotal step towards achieving Max Healthcare’s vision of extending top-tier clinical care across tier 2 cities.
Max Healthcare Institute Ltd. (MHIL), a prominent player in India’s private healthcare sector, has made a significant stride with the acquisition of Alexis Multi-Speciality Hospital Private Limited (Alexis), based in Nagpur, for an enterprise value of Rs. 412 crore. This strategic move marks MHIL’s commitment to expanding its presence and enhancing healthcare services in key regions across the country.
Alexis Hospital, boasting a 200-bed capacity and JCI accreditation, stands as a beacon of advanced medical care in Nagpur. Situated on approximately 2 acres of land in the bustling Mankapur area, the hospital’s facilities span across six floors and a basement, covering an expansive built-up area of around 2.25 lakh square feet. Its comprehensive range of medical services includes gastroenterology, neurosurgery, cardiology, transplants, and diagnostic facilities, supported by state-of-the-art biomedical equipment such as Varian True Beam LINAC, 128 Slice CT Scan, 3 Tesla MRI, and Digital X-Ray machines.
With potential for expansion to accommodate approximately 340 beds, leveraging the available Floor Area Ratio (FAR) and existing infrastructure, Alexis Hospital holds promising prospects for growth. Furthermore, there is ample opportunity to enhance its medical programs, particularly in surgical specialties like Cardiothoracic and Vascular Surgery (CTVS), urology, oncology, and neurosciences, which could contribute to elevating key performance metrics such as average revenue per occupied bed (ARPOB) and occupied bed days (OBD).
Presently, the hospital demonstrates robust financial performance, with a revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) standing at approximately INR 150 crore and INR 25 crore, respectively. Its ability to generate cash flow coupled with a strong brand reputation underscores its significance in the local healthcare landscape.
Nagpur, recognized as a rapidly evolving urban center with a population density of 4.7 million and a commendable literacy rate of around 90%, holds strategic importance in Maharashtra. Its central location facilitates accessibility from neighboring regions such as Amravati, Jalgaon, Gondia, and Chhindwara, while the presence of government hospitals, medical colleges, and private healthcare facilities ensures a steady supply of skilled medical professionals.
This acquisition not only fortifies Max Healthcare’s presence in Western India but also signifies its commitment to delivering top-tier clinical care across the region. Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Ltd., affirms the alignment of this strategic move with the company’s vision to extend its reach to tier 2 cities endowed with substantial clinical talent and advanced healthcare infrastructure. With the addition of Alexis Hospital, MHIL now boasts four JCI accredited facilities within its network, poised to elevate healthcare standards for the populace.
Zanubia Shams, Co-Chairperson of Zulekha Healthcare Group, the promoter of Alexis Hospital, expresses satisfaction with the acquisition by Max Healthcare, acknowledging the latter’s stature as India’s leading healthcare service provider. While affirming the world-class standards achieved by Alexis Hospital in terms of infrastructure, technology, and clinical services, Shams emphasizes the decision to divest as a strategic focus on their healthcare ventures in the UAE and Gulf region. She expresses confidence in Max Healthcare’s ability to further enhance the quality of care offered in Nagpur, thus propelling Alexis Hospital to greater heights.
Max Healthcare’s acquisition of Alexis Hospital marks a significant milestone in its mission to extend top-tier clinical care across India. With a robust foundation established in Nagpur and Western India, Max Healthcare is poised to enhance healthcare accessibility and quality for the region’s residents. The synergy between Max Healthcare’s expertise and Alexis Hospital’s advanced facilities sets the stage for transformative healthcare delivery, benefiting communities and fostering a healthier future.