HCG Acquires Mahatma Gandhi Cancer Hospital In Vizag For Rs 4,140 Mn

HealthCare Global Enterprises Limited (HCG), a leading cancer care network in India, has announced its acquisition of a controlling stake in Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag, Andhra Pradesh. 

The healthcare service provider in a press statement on Saturday informed that the acquisition is valued at Rs 4,140 million, with HCG initially acquiring a 51 per cent stake and planning to secure an additional 34 per cent over the next 18 months.

This acquisition is expected to enhance HCG's annual EBITDA by Rs 3 per share, solidifying its leadership position in Vizag, the press statement added.

B.S. Ajaikumar, Executive Chairman of HCG, emphasized the strategic importance of this acquisition. "This expansion strengthens HCG's presence in the region, enhancing our capabilities and reinforcing our commitment to providing high-quality treatment and support for cancer patients. The combined market leadership of HCG and MGCHRI will enable better utilization of doctor bandwidth and medical technology consolidation. We aim to augment tech capabilities to further improve the quality of cancer care in the region," he said.

Raj Gore, CEO of HCG, expressed pride in partnering with MGCHRI. "This partnership enhances our ability to provide cutting-edge care in Vizag's competitive healthcare landscape. MGCHRI aligns perfectly with our commitment to delivering high-quality healthcare services. Leveraging our existing presence and deep understanding of the local market, we are poised to maximise synergies across our facilities. This strategic integration will strengthen operational efficiencies and enable us to offer comprehensive, patient-centered care solutions," he stated.

Murali Krishna Vonna, Managing Director & Chief Surgical Oncologist at MGCHRI, highlighted the significance of this partnership. "Today marks a significant milestone for MGCHRI as we join forces with HCG. This union represents our shared vision to provide the highest quality cancer treatment and care to our patients in Vizag. By combining our strengths, we are poised to enhance our medical expertise, expand our services, and continue our commitment to patient-centric care," he remarked.

The partnership aims to address the significant demand-supply gap in radiation therapy equipment in Andhra Pradesh and Orissa, where the penetration rate is less than 0.6 per million. The integration will utilise established technology platforms for digital marketing initiatives, strengthening EBITDA margin and enhancing EPS growth.