HealthCare Global Enterprises Limited (HCG), a prominent cancer care provider, has announced the acquisition of Mahatma Gandhi Cancer Hospital & Research Institute (MGCHRI) in Vizag, Andhra Pradesh, at an enterprise value of Rs 414 crore.

HCG will initially acquire a 51% stake in MGCHRI, with plans to increase this to 85% over the next 18 months. MGCHRI reported revenues of Rs 110 crore and an EBITDA of Rs 40 crore for FY23, with provisional figures for FY24 at Rs 120.2 crore and Rs 42.2 crore respectively.

This acquisition positions HCG as a leader in a highly attractive micro-market, benefiting from a high-quality primary catchment area and substantial secondary catchment from neighboring states.

Raj Gore, CEO of HealthCare Global Enterprises, emphasized the strategic benefits of this acquisition: “This partnership enhances our ability to provide cutting-edge care in Vizag’s competitive healthcare landscape. This strategic integration will not only strengthen operational efficiencies but also enable us to offer comprehensive, patient-centered care solutions. We are excited about the opportunities ahead and remain focused on advancing healthcare outcomes for our patients while creating sustained value for our stakeholders.”

The partnership aims to address the significant demand-supply gap in radiation therapy equipment, which has a penetration rate of less than 0.6 per million in Andhra Pradesh and Orissa. By leveraging operational synergies and scale advantages, HCG plans to expand its multi-modality programs and enhance customer engagement through this acquisition. The integration will use established technology platforms for digital marketing.