HealthCare Global Enterprises Limited (HCG), one of India’s largest cancer care networks, has announced the strategic acquisition of Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag, Andhra Pradesh.
The deal, valued at INR 414 Crores, grants HCG an initial 51% stake in MGCHRI, with plans to acquire an additional 34% stake over the next 18 months.
This acquisition aims to establish HCG’s leadership in the Vizag region, leveraging a high-quality primary catchment area and a significant secondary catchment from neighboring states.
Founded in 1986, MGCHRI is a leading provider of comprehensive cancer care in Vizag, boasting the highest market share in the region.
The hospital’s advanced medical infrastructure includes 196 operational beds, 2 LINAC machines, 1 PET CT scanner, 1 Robotics Surgery System, and a dedicated Bone Marrow Transplant unit.
The clinical team comprises 31 doctors, including 12 surgical oncologists, 6 radiation oncologists, and 4 medical oncologists.
Financial Highlights:
| Particulars | FY21 (INR Cr) | FY22 (INR Cr) | FY23 (INR Cr) | FY24E* (INR Cr) |
|---|---|---|---|---|
| Revenue | 87.6 | 105.8 | 110.0 | 120.2 |
| EBITDA | 33.9 | 39.4 | 40.0 | 42.2 |
*Financial Highlights Provisional and subject to audit
Dr. B.S. Ajaikumar, Executive Chairman of HCG, emphasized that this acquisition marks a significant milestone for the company, reinforcing HCG’s commitment to providing high-quality cancer treatment.
He highlighted the strategic importance of Vizag in HCG’s growth journey and the potential for better utilization of doctor bandwidth and consolidation of medical technology.
Raj Gore, CEO of HCG, expressed pride in partnering with MGCHRI, a top-tier institute known for its advanced technology and comprehensive medical programs. He highlighted the synergies and operational efficiencies expected from this integration, which will enhance patient-centered care and drive innovation in healthcare delivery.
Dr. Murali Krishna Vonna, Managing Director & Chief Surgical Oncologist at MGCHRI, remarked on the alignment of MGCHRI’s and HCG’s visions, focusing on delivering the highest quality cancer treatment and care. He expressed enthusiasm for the opportunities this partnership brings to enhance medical expertise and expand services in Vizag.
This partnership aims to address the significant demand-supply gap in radiation therapy equipment in Andhra Pradesh and Orissa.
HCG plans to expand its multi-modality programs and enhance customer engagement strategies, leveraging operational synergies and established technology platforms for digital marketing initiatives, thereby strengthening EBITDA margins and EPS growth.
About HealthCare Global Enterprises Ltd.:
Headquartered in Bengaluru, HCG is India’s largest provider of cancer care, operating 21 comprehensive cancer centers across India and Africa. HCG offers advanced cancer diagnosis and treatment technologies, and also operates 7 fertility centers under the “Milann” brand.
