The Fortis group is scouting for acquisition and joint venture opportunities in Tamil Nadu.
The hospital group entered Tamil Nadu in 2007 with the acquisition of Malar Hospitals in Chennai. It is now looking to enhance its presence in the State in the next couple of years.
“We are evaluating opportunities in Madurai and Coimbatore. It could be an outright acquisition or a joint venture. Fortis has always been a tertiary care player. To deliver a certain level of tertiary care, we are evaluating multi-speciality hospitals which have at least 100-150 beds,” said Vijayarathna. V, Zonal Director in-charge of Tamil Nadu.
Fortis is not looking at greenfield opportunities as it is keen to get a “headstart” with acquisitions and kick-start its operations soon in the State.
The hospital group could look at creating a sub-brand for smaller cities, said Vijayarathna.
Meanwhile, Fortis is coming up with another multi-speciality hospital in Chennai. The greenfield facility will go in with the Fortis tag alone.
“We will not use the Malar name, as Malar is a different entity. When Fortis entered Chennai, it was a relatively unknown name and it made sense to use the Malar name and leverage the 16 years of its existence. Fortis now is over four years old in the Chennai market and is now a familiar brand.”
The 250-bed hospital in the city consists of 10 floors. It is expected to be ready in December hospital. Fortis has taken up the space on a long term lease. The investment in this facility is around Rs 80 lakh to Rs 1 crore per bed.
“In terms of services offered and technology installed, the hospital could have a premium pricing,” said Vijayarathna. The group looks to bring in latest in cardiac 3D mapping, imaging systems and spine and neuro technology.
The existing 200-bed Fortis Malar hospital in Chennai is being expanded to add another 50 beds.
When Fortis acquired Malar, it came with debt which was wiped out last year. Fortis Malar’s income for 2011-12 was Rs 95 crore.