Fortis buys Malar Hospitals in Chennai

Fortis is spreading its wings to become a pan Indian healthcare company and on Friday Fortis acquired Chennai-based Malar Hospitals, its first in south India.

Fortis has picked up 46 per cent stake in the multi-speciality hospital, which has 180 beds. The EVA of the hospital is Rs 56 crore and an open offer is to follow.

"We have acquired the hospital in prime location of Chennai. We have paid Rs 30 per share for the hospital and acquired 46 per cent through equity and debt. The hospital is a multi-speciality hospital and we'll decide what we'll do with it later," said Shivinder Mohan Singh, CMD, Fortis Healthcare.

Till now, Fortis has been a north Indian player. They see this as the first step in their expansion plan to south and the west. It has set itself a challenging target of 40 hospitals from the present 13 in the next four years.

"We intend to set up 7,000 beds by 2010. The plans are on track," Singh added.

With the latest acquisition of the Malar Hospitals in Chennai, Fortis is emerging as one of the biggest healthcare companies in India. While organic growth will continue, Fortis is also taking the inorganic route to meet its expansion plans.