Fortis eyes multiple healthcare segment in Gujarat

Fortis Healthcare Ltd, promoted by the founders of Ranbaxy Laboratories, is targeting the multiple healthcare segment in Gujarat.

A source close to the development informed Business Standard that the company was interested in entering the multiple healthcare segment in the state.

"The acceptability of private healthcare facility in Gujarat is far better than other states in India. The demand and affordability scenario in Gujarat is also bright," the source said.

The company believes that Gujarat is a promising market and holds more potential for the impetus that the company needs for its growth.

According to the source, the company is very much aware about the spurt in the private healthcare facilities in the state, especially the recent acquisition of Vadodara-based Unity Hospital by Sterline Hospital of Ahemdabad.

On the possibility of Fortis acquiring any Gujarat-based hospital, the source said the company would follow the same methodology in Gujarat which it has adopted for expansion in the last five years.

He further said the company follows the models of acquisition, management contract and ownership.

However, looking back at its last five-year history of growth, which was basically from its inorganic growth strategy, it looks like that the company might go for acquisition in Gujarat.

Recently, Escorts Heart Institute and Research Centre Ltd was sold to Fortis at Rs 650 crore. Following that, the company is on an expansion spree to strengthen its presence across India.

The company is coming out with an initial public offer to raise funds between Rs 700 and Rs 900 crore. Of this, approximately Rs 300 crore will be utilised for paying off the debt that it acquired during its Escorts takeover.

Fortis has a network of 12 hospitals pre-dominantly based in north India and 15 satellite and heart command centres in hospitals across the country and one heart command centre in Afghanistan.