CARE Hospitals buy majority stake in United CIIGMA for around Rs 400 cr

Hyderabad-based CARE Hospitals has acquired a majority stake in Aurangabad-based United CIIGMA Hospitals for an estimated Rs 400 crore.

The investment will allow CARE to have a presence in three Maharashtra cities. CARE’s network spans 17 healthcare facilities in eight cities and six states of the country. A source said that the size of the deal is between Rs 300-400 crore.

“We are delighted to welcome United CIIGMA Hospitals to the CARE Hospitals network. The addition of this institution adds tremendous clinical depth and scale to our presence in Maharashtra and takes forward our focus on expanding the network in tier 2 cities of the country…,” said Jasdeep Singh, group chief executive officer at CARE Hospitals.

CARE was instituted in 1997 as a single-specialty cardiac hospital in Hyderabad with 100 beds and 20 cardiologists. The group said it has grown to become India’s leading multi-specialty hospital network with focus on tier-2 cities. Aurangabad-based United CIIGMA Hospitals specialises in oncology, gastroenterology, and cardiology.

“United CIIGMA Hospitals has been delivering high-quality healthcare with a patient-first approach in the Marathwada region for over a decade. With this partnership, our combined efforts with CARE Hospitals will allow us to scale up through better quality, newer and high-end specialities and make quality healthcare accessible to all our patients across Marathwada and beyond,” said Unmesh Takalkar, chief managing director of CARE Hospitals.

“The fast-growing tier 2 cities in the country have a current demand-supply gap of 50,000 beds which is likely to expand to 110,000 beds in the next 5 years. These cities represent the next phase of growth as consumers aspire for better healthcare services and CARE Hospitals is very well positioned to consolidate and grow in these cities,” said Vishal Bali, chairman at CARE Hospitals.