HealthCare Global Enterprises Limited (HCG), a leading name in cancer care across India, has recently finalized the acquisition of Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag, Andhra Pradesh. Valued at Rs 4,140 million, this acquisition marks a significant strategic move by HCG to expand its footprint and enhance its service offerings in the region.
The acquisition process includes HCG initially acquiring a 51% stake in MGCHRI, with plans to secure an additional 34% over the next 18 months. This move is anticipated to bolster HCG’s annual EBITDA by Rs 3 per share, consolidating its leadership position in Vizag’s competitive healthcare landscape.
B.S. Ajaikumar, Executive Chairman of HCG, underscored the strategic importance of this acquisition, emphasizing that it strengthens HCG’s presence and capabilities in providing high-quality cancer treatment and support. He highlighted the synergies that will be realized through the combined expertise and resources of HCG and MGCHRI, aimed at optimizing medical technology and enhancing patient care outcomes.
Raj Gore, CEO of HCG, expressed confidence in the partnership with MGCHRI, stating that it aligns perfectly with HCG’s commitment to delivering advanced healthcare solutions. Leveraging HCG’s existing market knowledge and operational strengths, the integration with MGCHRI is poised to maximize efficiencies and offer comprehensive, patient-centric care solutions across the region.
Murali Krishna Vonna, Managing Director & Chief Surgical Oncologist at MGCHRI, emphasized the transformative potential of this partnership for patient care in Vizag. He highlighted the shared vision of both organizations to elevate the standard of cancer treatment, expand service capabilities, and uphold a patient-centric approach.
The strategic alignment between HCG and MGCHRI aims to address critical gaps in radiation therapy equipment availability in Andhra Pradesh and Orissa, where access remains limited. By integrating established technology platforms and enhancing digital marketing initiatives, the partnership aims to strengthen EBITDA margins and foster sustainable growth in EPS, further solidifying HCG’s leadership in cancer care provision.