The Adani Group has set up a new company for its foray into healthcare services through the acquisition of large hospitals, diagnostics chains, and offline and digital pharmacies.
Adani Health Ventures Ltd., a wholly-owned subsidiary, was incorporated on May 17, 2022, Adani Enterprises Ltd. said in a filing on Thursday. It will “carry on the business of healthcare-related activities including, inter alia, setting up, running, administrating medical and diagnostic facilities, health aids, health tech-based facilities, research centers and to do all other allied and incidental activities in this regard.”
Adani Health, the filing stated, will commence its business operations soon.
The billionaire Gautam Adani-led conglomerate, which operates seaports to airports and energy, has forayed into the cement sector by acquiring Holcim’s India businesses — Ambuja Cements Ltd. and ACC Ltd.
For its healthcare foray, the group reportedly has been in talks with big names in the sector and may invest up to $4 billion.
Adani and Piramal Healthcare are reportedly in the race to buy HLL Lifecare Ltd. The government had in December 2021 decided to sell 100% stake of the company to private entities. As many as seven initial bids have been received for the company.
The healthcare space in India is quite fragmented, and dominated by local and regional players.
In recent years, the online pharmacy space has witnessed significant M&A activity, what with Reliance Industries Ltd. acquiring a majority stake in Netmeds for Rs 620 crore and Tata Group buying out 1mg.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.